Pakistan concentrated all development efforts aiming at tracking the economy on a higher and sustainable economic growth reducing unemployment, but these efforts resulted in high fluctuations in population falling under poverty line overtime. This indicated that not only the growth but also income distribution pattern associated with other socio and demographic factors constitute phenomenon to achieve the objectives having concern with welfare of the poor and non-poor. The present study addressed the measurement of social welfare of the country using the Ordinal and the Cardinal Approach on the basis of efficiency (economic growth) and inequality (income distribution pattern). The Lorenz curve closet to egalitarian line was of 2001-02, which reflected the highest social welfare gaining in this year. There emerged a merged line of the curves for 1990-91 and 1998-99. However this comparison gave ambiguous results due to intersection pattern. Gini-coefficients showed instability and remained fluctuating in the country as well as in rural and urban areas during the considered years. In 2001-02 a drastic decline to the extent of 0.29 in Gini-coefficient in Pakistan and the lowest one (0.16) in the history of the country in rural area was registered. There occurred always positive changes in social welfare due to increase in mean income, while inequality pattern contributed negative or nil during the considered period except 1998-2001. For this period the income growth and decrease in income inequality contributed positively in welfare of the population. By ignoring inequality and adjusting efficiency with the variable values of B, it was found that neglecting the effect of growth would not be beneficial for the society. In 2001-02 the highest changes in social welfare was estimated at considered values of B as the inequality declined during this period. Consequently efficiency and equality were both essential ingredients to increase welfare of population. Neglecting any might cause failure in consideration of welfare-oriented policy objectives.

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