The transgender community in Pakistan has always been facing the issues of social discrimination, economic vulnerability and gender stigmatization due to poor societal acceptance. The rights of transgenders were also ignored by the official actors in their policy debates and law making. Before 2018, there was no national policy/act to protect the rights of transgender community which shows lack of government’s focus resulting in their neglected status in the society. The present study aims to address the poverty faced by transgender community due to social exclusion. It also aims to look into the benefits of implementation of Transgender Protection Act, 2018. For the purpose of present study primary survey is carried out and the data is collected from various areas of Islamabad where transgender community resides in abundance. In this regard, 30 in-depth interviews and 2 focus group discussions were conducted using a detailed interview guide. The respondents were selected on the basis of snowball sampling. The research data which explains the demographics of study sample was analyzed quantitatively using descriptive statistics. The research data which addresses the transgender community’s perception and current socio-economic situation is analyzed using thematic analysis. The study results show that the transgender community is subjected to vicious poverty circle due to their gender, absence of family ownership and societal exclusion. It was also found during the study that despite the enactment of Transgender Protection Act, 2018, the socio-economic status of transgender community remains poor. As a result of these societal trends and absence of regulatory mechanism, transgender communities are unable to exercise their basic rights. The study provides a guideline for future researchers to look into the policy implementation gaps due to poor policy communication between legislature and executive agencies. Overcoming this policy gap can lead to effective resource mobilization and efficient addressal of socio-economic problems of transgender communities in Pakistan. Supervisor:- Dr. Talat Anwar