Environment plays a significant role in the life of the people living in poverty. It is a fact that the poor are more vulnerable to environmental disasters and the impacts of climate change. The poverty-environment linkage has been widely recognized in Pakistan over the past few years. There is a great connection of environment with health, livelihoods and education of the poor. The increase in oil prices all around the world has played a major role in increasing the poverty ratio which has in turn lead to deforestation. The paper discusses the poverty-environment linkages in Pakistan and the effect of environment on the lives of the poor. Moreover, the paper discusses the case study of district Ghotki Sindh for the years 1992-2010, to find out the trend of forestation in the district and its effect on the lives of the people residing over there. Deforestation was found to be positively linked with the rich people contributed in environmental degradation over the past many years.