Economic growth necessitates the development of human capital and education. It plays a critical and necessary role in the formulation of income distribution policies and alleviating poverty. This study investigates the relationship through ordinary least square (OLS), fully-modified OLS and dynamic OLS models using panel data from the South Asian Association for Regional Cooperation (SAARC) countries from 1990 to 2018. According to the findings, imbalance plays an important role in influencing poverty and concludes that the government should embrace procedures that help improve pay distribution to reduce poverty at the strategy level. Furthermore, the findings state that a bi-directional Granger causality exists between schooling and poverty. In terms of strategy, SAARC countries should continue to increase the proportion of sustainable energy used for financial development, thereby decreasing the use of fossil energy for environmental improvements. Additionally, this study shows that the association of pay disparity hoses the positive effect of financial development on poverty, and it supports the contention that the degree of imbalance reduces the impact of comprehensiveness. Pay disparity is now a critical determinant of poverty.