Metal in the form of sheets is paramount in the manufacturing industry. Its applications are countless. But metal in the form of sheets cannot be directly used, operations like cutting, punching, blanking, bending, trimming, etc. are needed to be carried out on the metal sheets in order to fully utilize them. For these operations, most large scale manufacturing industries use hydraulically operated machines. But since hydraulic machines are not cost-effective, most small and medium scale industries use hand-operated machines for carrying out sheet metal operation. The problem with hand-operated machines is that they are slow and cannot be automated. This is where the concept of pneumatics will prove itself advantageous. We are developing a pneumatically operated cutting and punching machine which will use the help of compressed air to drive a shearing blade and punch to carry out the operations on a metallic sheet. The machine is designed to cut 1mm thick aluminium sheets and 0.5mm thick copper sheets very easily. The main components of developed pneumatic system are compressor, pipelines, double-acting cylinder, an actuator, and flow control valves. This machine will thus, prove itself cost-effective and also save a lot of time in manufacturing process as two operations can be performed on the same platform.