The study was aimed to examine the effect of leadership development on employee performance in Pakistan. This study was conducted considering five factors of leadership development, i.e. coaching, training and development, empowerment, participation and delegation and it was found that the combined effect of these factors influences employee performance with 50%. However, rest of the 50% contribution towards employee performance other than leadership development factors can be the result of other factors such as: attitude, commitment, motivational factors, and trust in the organization, and other factors such as compensation, reward and bonuses etc. can also increase the employee performance. The five variables collectively as leadership development factors prove a synergic effect and increase the overall employee performance. The policy alternative should be that organizations must be cleared about the learning requirement of the employees. Therefore, both managers and employees must collaborate effectively and communicate the requisite for performance.