Developing countries experience several health sector problems along with low per capita income including Pakistan. One of the main problems is out of pocket health expenditures and its impact on households in Pakistan. The purpose of the study is to observe the impacts of out of pocket health expenditures on other expenditures especially on food expenditures and poverty in Pakistan. The primary data has been used in the study where all data for health expenditure is collected through semi structured interviews. Results of the study shows that over all there is a negative relationship between out of pocket health expenditures and food expenditure of a household in Pakistan. There is also a negative relationship between poverty and out-of-pocket health expenditures in Pakistan. Supervisor:-Dr. Muhammad Jehangir khan