This research investigates the sustainability of Micro Credit system in Pakistan and impact of poverty alleviation. Data were collected from 400 respondents who used Micro credit by using the simple random sampling technique and data were analysis by using SPSS-18 version. Interviews of farmers/ growers, officers of micro credit, office public and private supporting services, Institutions and other professionals were conducted by using structured interview. Present study attempts to viability of Micro credit system in Pakistan and how its impact on, macro economic policies designed to accelerate growth were combined with appropriate fiscal polices for income redistribution for reducing inequalities. The second style aims at public investment in creating an infrastructure for providing health, education, etc. with a view to promoting quality of life. Results showed that Micro credit has positive impact on alleviate poverty in Pakistan. The case study indicates that 40% of the beneficiaries opened shops/small provision stores, followed by investment in poultry, embroidery and livestock.