This paper analyses the strategies for eradication of poverty in the rural areas of Sindh. It correlates the extent of microfinance in the process of poverty alleviation. Financial services at micro level are provided by Micro Finance Institutions (MFIs) to rural people in the shape of microcredit, micro savings and micro insurances through group lending approach. This study conducted in the selected villages of Mirpurkhas district. Participants were selected randomly from Community Groups (CGs) made for availing microfinance services from MFIs working in the area for business purposes. The study aims at exploring prevalence of rural poverty and inequalities. The study further explores the corelationship between availability of micro financing and poverty alleviation. The results of study show that the presence of higher level of poverty and inequality among rural population of Mirpurkhas district and also confirm the significant contribution of microfinance, towards poverty reduction in study area.