This paper investigates the effects of health status proxy by life expectancy and the
expenditures on health along with the foremost socio-economic factors on the poverty
levels proxy by head count ratio in Pakistan. Although it is a well documented fact that the
health indicators in Pakistan have been increased remarkably since its independence, yet its
status is still far behind among the nations of the world. Again one can easily analyze the
contradiction between the soaring rate of funding in health sector and its outcomes. The
dilemma a simple question whether the expenditures on health alone for the provision of
health services to the masses is sufficient enough to alleviate poverty in Pakistan, or rather,
if there are other socio-economic factors which are crucial to alleviate poverty in Pakistan
so far. The paper had applied the methods of least squares to investigate the relationship
between poverty and health status in Pakistan. The study constructs strong relationship
between health and poverty in Pakistan. The paper asserts that health is an important
determinant of economic performance and there exists a strong relationship between
poverty and measures of health. It has also argued that the key improvements in health
would cause hefty economic gains. Thus, the idea is verified that improved health status
increases the human skill and earning capacity which eventually reduces the poverty levels.
In the end the paper suggests the suitable policies which can improve the health status for a
greater cause of poverty reduction.