There is a long list of studies related to distribution of income in Pakistan. Most of these have been confined to the calculation of various measures of inequalities. These studies include Khadija Haq (1964), Bergan (1967) Mehmood (1984), Ercelawn (1988), Ahmad and Ludlow (1969) etc. Apart from these there are other studies including Jeetun(1978), Chaudhry (1982), Cheema and Malik (1984) Kruijk and Leeuwen (1985), Kruijk (1986), Kemal (1994), Jaffery and Khattak (1995), Chaudhary (1995) etc. Jeetun (1978) in his paper concentrated on consequences of economic growth on the level of inequality whereas Chaudhary (1982) tried to find out the impact of the Green Revolution on income inequalities. Cheema and Malik (1984) tried to find out the effects of different income policies on the consumption and level of employment in Pakistan. Kemal (1994) examined the impact of the adjustment period of Pakistan since the late 1970s on efficiency and equity. Jaffrey and Khattak, while utilising HIES 1990/91, measured and analysed inequality and poverty in Pakistan together with their historical trends. They also analysed the phenomenon of income inequality and poverty and their relation to the distribution of assets and employment. Chaudhary (1995) computed and analysed income inequality in Pakistan as well as in its provinces broken down to rural urban level. He not only studied the extent of inequality in Pakistan but also its change over time measured on the basis of per capita income distribution involving households