The main purpose of this paper is to investigate the impact of gender inequality in education on rural poverty in Pakistan using Logit regression analysis on primary data sets. It is concluded that gender inequality in education has adverse impact on rural poverty. The empirical findings suggest that female-male enrolment ratio, female-male literacy ratio, Female-male ratio of total years of schooling, female- male ratio of earners and education of household head have significant negative impact on rural poverty. The results indicate that household size and female-male ratio (members) have strong positive association with the probability of poverty. The inverse relation between variables of gender inequality in education and rural poverty suggests that education provides more employment opportunities and rejects poverty in developing countries like Pakistan.