Self-determination theory proposes that satisfaction of the basic human needs for autonomy, competence, and relatedness are essential for people to perform at their best across cultures. The study aimed to investigate self-determination theory in a collectivistic culture using the relationship between learning climate, intrinsic motivation, psychological wellbeing and academic performance. Students doing postgraduate degree in Clinical Psychology program (n= 150) with (females = 130, males = 12) were recruited from universities of Lahore, Pakistan. Path analysis was conducted. Path model I showed the weak correlation of learning climate with intrinsic motivation. Subscales of Intrinsic Motivation Inventory (IMI) (interest/enjoyment, competence, perceived choice) showed indirect effect with psychological wellbeing whereas subscale of IMI (pressure/tension) shared direct effect as pressure among students in collectivistic culture was found to be affecting their psychological wellbeing. In Path model II, learning climate and intrinsic motivation showed indirect effects on CGPA. Learning climate of Eastern countries is more controlling so learning climate and pressure/tension directly and indirectly affected psychological wellbeing. The findings highlighted that students in Pakistan are not practicing intrinsic motivation to achieve academic performance. Therefore, needs of self-determination theory are not satisfied in academic performance of students in collectivistic culture.