Livelihood depends upon development, which directly or indirectly needs intervention of Government, NGOs and Community Organizations, etc. Diversification widens people’s options, encourages spatially diverse transactions, increases cash in circulation in rural areas, and enhances human capital by providing those who diversify with new skills and experiences. People living in country are highly skilled can transform the available resources into something usable for consumption. Microcredit programmes have brought the vibrancy of the market economy to the poorest villages and the people of the World. This business approach to alleviation of poverty has allowed millions of individuals to work their way out of poverty with dignity. The contribution made by livelihood diversification to rural livelihoods is a significant one, which has often been ignored by policy makers. As Pakistan is also a developing country, that is why, we need to identify reasons. To keep these things in mind attempt has been made to identify the reasons of poverty as special objective; and to identify strategies made by country for the reduction of poverty and its consequences. This study is an exploratory research.