This study is an attempt to investigate the impact of economic shocks on child educational attainment. This effect has been evaluated for the rural area of Pakistan. We have estimated the shocks impact on child grade attainment using censored ordered probit model. The empirical evidence is reported for the rural areas of Punjab, Sindh and KPK. The data is taken from Pakistan Rural Household Panel Survey (PRHPS-2012, round 1). The results show that shocks at household level are inversely affecting child grade attainment. Conversely, the effect of community level shocks on child grade attainment is insignificant for the whole sample as well as at disaggregated level. These results suggest that the support network should focus on both individual level and community level shocks. The household level shocks are of importance as these shocks are adversely affecting expenditure and consumption pattern of household concerned. Those households which face adverse shocks have lower wellbeing on multiple dimensions as compared to other households. Supervisor:- Dr. Muhammad Jehangir Khan