Poverty remains an essential global issue in this new century as well, despite the number of global and domestic initiatives undertaken by governments and international agencies. Pakistan, being a developing country, has been facing the realities of poverty, where a number of programmes developed at state and civil society level to respond to poverty. In an attempt to alleviate poverty in the Pakistan, financial resources are provided by microfinance institutions to poor and vulnerable people to engage in income generating activity on soft term and conditions. Zakat Institution and BISP provide free cash to needy and poor as living allowances. ZI, PBM and NGOs provide financing for human capital development through education and training to manage the poverty reduction. These institutions facilitate the poor segment directly to manage the poverty reduction on sustainable basis. The research presented in this study, hence, aims to explore and evaluate the financial dimensions of managing poverty reduction in rural Pakistan through a micro level study to evaluate the outcome and effectiveness of poverty reduction programmes in Pakistan by focusing on the impact of such programmes in DG Khan and Rajanpur Districts. In fulfilling the aim of this study, primary data were collected through a questionnaire survey to measure the perceptions of the households, in the form beneficiaries and non beneficiaries, on the outcome and efficiency of the poverty reduction programmes in the DG Khan and Rajanpur. In terms of analysis, this study used non-parametric (Kruskal Wallis and Mean U Whitney tests) and parametric inferential statistics, such as logit model, to draw the result for research questions.