Abstract: In Pakistan 34 percent or 49 million people are poor. Poverty has increased significantly in the 1990`s. Inadequate resource allocation towards education, health care and rural development has been adding more number in the pool of impoverished and poverty stricken. The population of country is a double-faced phenomenon. It is an asset and a viral factor in the development process on the one hand and a rapid population growth can hamper development on the other. Credit is an important instrument of acquiring command over the use of working capital, fixed capital and consumption goods. The present study was aimed to assess the impact of the micro-credit intervention by PRSP for micro enterprise development. The results showed that PRSP`s micro-credit program had significant impact on people belonging to very poor category.