Muhammad Usama Altaf2025-09-282025-09-282016https://escholar.umt.edu.pk/handle/123456789/7252The paper explores the impact of development expenditure, military expenditure, debt, political stability, foreign direct investment and inflation on poverty, income inequality and unemployment in context of Pakistan. Time series uninterrupted data is used for period 1980 to 2014. Income inequality is a havoc by which income gap increases between rich and poor of society. Capitalism is the main root cause of income inequality as capitalists are taking and snatching the hard work of poor as the critics claim. Pakistan has high unequal distribution of income also because of capitalist system in society. Poverty is a sheer state of adequacy in which people even lack basic necessities. Basic necessities include food, clothing and shelter but according to some modern lists, it includes basic education and healthcare as well. More than quarter of population of Pakistan is living far below the poverty index. Unemployment is an economic havoc in which people do have some specific skill and willingness to work but there is no job opportunities present for them in market. Pakistan has alarming unemployment rate as compare to developed nations. Due to all these havocs discussed here, state of unrest and chaos rise in society damaging all the other sectors and law and order situation as well. Poor health and, depression and brain traumas also increase in such societies. The empirical findings confirm that development expenditure is decreasing poverty and unemployment but increasing inequality due to capitalism. Military expenditure is decreasing inequality and unemployment but has no impact on poverty. Foreign direct investment is decreasing inequality and unemployment. Debt is decreasing poverty and unemployment. Results also show that political stability is increasing poverty and unemployment. Policy makers should consider the current scenario in light of given research.enThesis