This study examines the incidence and determinants of catastrophic health expenditures and impoverishment in Pakistan. Out- of- Pocket Health expenditures are a major source of health financing in many countries. These expenditures can cause households to incur catastrophic costs. Annually millions of people fall below poverty due to these catastrophic payments. They are involuntary and affect the economic welfare of a household. People have to sacrifice their other basic needs in order to meet catastrophic health expenditures. The Household Integrated Income and Consumption Survey (HIICS, 2015-16) are used for measuring the incidence of catastrophic health expenditures. This study used descriptive analysis to investigate the incidence of catastrophic health expenditures and impoverishment. We define catastrophic health expenditures at two thresholds i.e. 10 percent of total household expenditure and 40 percent of household’s capacity to pay based on methodologies proposed by Wagstaff and Doorslaer (2005) and Xu et al (2005). We also applied several thresholds reported in other studies to demonstrate the sensitivity of measures of catastrophic expenditures. High rates of incidence (14.76%) of catastrophic health expenditures are found for a 5% threshold, whereas 0.54% and 0.48% incidence is estimated for 40% threshold and methodologies respectively. The households were pushed into poverty due to health care payments. Both individual and household characteristics significantly affect the catastrophic health expenditures. Catastrophic expenditures and impoverishment problems were more common among the households who are located in rural areas and have children and elderly people. High out of pocket health expenditures requires equitable distribution of health services among all the groups of the society. Supervisor:- Dr. Muhammad Nasir