This study attempts to examine the theoretical relationship between income poverty and multidimensional poverty, and to explore the empirical linkages and discrepancies between these two types of poverty measures using Pakistan Panel Household Survey (PPHS) dataset. Income poverty measure indicates that incidence of poverty has declined 27.5% (2001) to 20.7% (2010). While multidimensional poverty declined from 75.46% (2001) to 35.98% (2010). Dynamics perspective results highlight that incidence of multidimensional poverty is higher than incidence of income poverty. The result indicates that there are about 75% households of total population facing multidimensional poverty which is higher than those households who are facing income poverty (38%) over this extended period of time. Other results indicates that the proportion of population that is moving into poverty pool and moving out of poverty pool is higher in Sindh and Southern Punjab than in central-north Punjab by using income poverty approach. Multidimensional poverty approach results revealed that there is a significant decline in the incidence of headcount poverty rather than intensity of poverty. Results of dynamics of multidimensional poverty approach reveals that there is more than 50% households of the total sample are transitory poor during 2001-10. A little attempt can reduce the multidimensional poverty significantly by focusing on child school attendance, quality of education, assisted delivery and sanitation issues. The result indicates that there is no significant association between the gender of household head and the dynamics of poverty according to both poverty approaches. Association between age of the household head and poverty dynamics is significantly according to income approach while it is insignificant according to multidimensional approach. According to both poverty approaches, there is a significant and negative association between the education of the household head and dynamics of poverty. Family size is significantly associate with poverty dynamics but this association is positive in case of income approach while this association in negative according to multidimensional approach. Supervisor:- Dr Nasir Iqbal