This study examines household characteristics and personal characteristics of the
household head as the determinants of poverty in Pakistan. The study decomposes education of
the household into different levels: primary, middle, matriculation, intermediate, bachelors and
higher studies and finds evidence that poverty is greatest among the less literate households and
declines as education level increases. The role of remittances appeared significant in reducing
probability of being poor and this is more striking in rural areas. The probability of being poor
reduces in urban area implying that incidence and severity of poverty is more pronounced in
rural areas. The variables that are negatively related with the probability of being poor are:
experience, age square and agriculture employment status. While the variables that are positively
related with the probability of being poor are: household size, age of the household head, maleheaded
households and the provincial residence.