Poverty is an economic condition referring to the unavailability of basic necessities for the survival of human beings. It includes food, health, education, shelter, etc. to reduce Poverty is a long and difficult process. It is designed to decrease the economic deficiency level of groups, communities, regions, or countries. About 29% of the population lives under poverty rate in Pakistan. The government of Pakistan took loans from the World Bank, IMF, and other monitoring organizations to reduce poverty and provide job opportunities for the poor for the uplift of marginalized groups or communities. However, it does not work; the major reason is the corrupt system that does not deliver said services to poor people. Whereas Islam has the capacity to reduce poverty through Islamic philanthropy, which is a basic element in Islamic teaching. Philanthropy is effective because it is given to the poor without any personal liking or disliking, without even involving others or even identifying those groups and communities. Zakat is one of the types of Islamic philanthropy that contains "divine and moral" significance. It is an injunction from Allah Almighty that those, who pay the zakat are considering trade with Allah (SWT), and it has moral and humanitarian significance that an individual who pays zakat will reduce poverty and empathy with the poor. Keywords: Poverty, Socio-economic Condition, Islamic System, poverty reduction, Philanthropy