Poverty is a great physical deprivation, which not only affects socially but also psychologically. The study focuses on the causes of poverty and recommendations. The research mainly emphasizes the lack of good governance, negligence of agriculture sector, unfair distribution of allocation and resources in education, health and other social sectors. The lack of infrastructure, the inadequate number of girls schools are specially focused. The social sector policies and micro finance also comes under discussion. Small & cottage industries have also been put under the centre of attention. Little share of national budget is spent on the programs of social development as compared to the national budget on defense.