Any kind of work that deprives a child from their childhood would be referred as child labour. The incidence of child labour has been very high in developing countries, including Pakistan, India and Bangladesh. Though there has been wider debate on the policy issues of the child labour, there is a consensus that it is a menace and must be eliminated from the society from the grassroot level. The study for this thesis is conducted in Rawalpindi City. The present study has a qualitative approach and has conducted 3 types of in-depth interviews i.e. from child laborers, parents/guardians of children involved in child labor and from policy makers and/or people working on child labor. The study participants were selected based on purposeful sampling. The collected data in the form of in-depth interviews and focus group discussions is analyzed using thematic analysis. The study results show that low income levels, family size and parental education are the factors which influence a child to engage in economic activity while parental education, birth order and lack of educational facilities are the mediating factors that force a child to engage in child labor. On the other hand, to minimize the cost of labour in the informal sector and domestic industry employers hire children. There is simple policy measure that can eliminate child labour in Pakistan. Therefore, it is important to devise a holistic strategy that can deal with the root causes of child labour to control and eradicate it. Microfinance schemes should be introduced for poor households for them to avoid child labor. Whereas, a strong monitoring system must be adopted to attain a proper check and balance on the child labor activity. Supervisor:- Dr. Usman Qadir