Poverty is a multidimensional phenomenon. It is marked as wellness deficiency. It is a state in which one is unable to acquire the basic necessities for survival. Poverty means inability to have food, shelter, clothing, education, clean environment, poor access to clean and hygienic water and lack of opportunities to improve one's life. [Arif, et al. (2012)].One of the main reasons for poverty is unemployment. Unemployment leads to financial crisis and decreases the overall purchasing power of a nation. This in turn results in poverty. Population, inflation, lack of education and inequality in income distribution are also reasons behind poverty [Human Development Index (HDI)]. In Pakistan the unemployment rate is 5.6%, mainly due to lack of opportunities and political instability and unemployment is a serious problem. developing in Pakistan [Imran Shrif, (2003)].Inflation indicates the increase in the general price level of goods and services in an economy over a period of time. Inflation is one of the main indicators of the economy. It provides significant understanding of a country's economic status and global macroeconomic policies to control it. Stable prices not only create a developed environment for economic growth, but also benefit the poor who are the most easily reached in society. Inflation has become a crucial problem and a major obstacle in the way of progress in Pakistan. Inflation is a key variable that has a significant impact on poverty [Krishna (2011)].CHAPTER 2 LITERATURE REVIEW 2.1 INTRODUCTION This chapter discusses the historical context related to poverty. This chapter has carried out previous work done by different countries and int...... halfway through the article ......(ARDL). CHAPTER 4 RESULTS AND CONCLUSIONS To see the determinants of poverty in Pakistan, the data of the variables are checked using different econometric techniques using E-views 7 software. The results will be discussed and interpreted in this chapter in detail. 5.1 Unit root test For the time stationarity of the data, the data plays a dynamic role that precedes the execution of the econometric analysis. If the variables are not stationary, the result may be a spurious regression. 5.2 Spurious regression In spurious regression the value of t stats or the significance of the parameters is high but there is no strong economic interpretation between the dependent and independent variables. The variables are non-stationary and extremely low Durbin Watson values ​​with high R^2 values.5.3 Stationary of the variables: To test the stationary of the variables we use the unit root test.