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The current study aimed to investigate how the household empowerment can potentially reduce the rural poverty incidence. The data were collected through multistage random sampling from the rural households of 24 villages in Southern Punjab, Pakistan. A total of 600 households were selected as sample pool. Face‐to‐face interviews with the household heads were conducted. The household empowerment was measured through an index that was adopted from Abrar‐ul‐haq (“An assessment of the role of household empowerment in alleviating poverty in Southern Punjab, Pakistan” (Ph.D. Dissertation), School of Economics, Finance and Banking, Universiti Utara Malaysia, 2017). The binary logit model was used to analyze the impact of household empowerment with other control variables on poverty incidence. The results of the current study confirm the negative nexus between household empowerment and poverty incidence of rural households as the study reported that the probabilities (odds ratio: 0.877) of being poor are reduced by increasing the empowerment (in every aspect, economically, politically, and socially) of the households, and the results are statistically significant at the 1% level of significance. Based on empirical results, this study suggests that household empowerment has significant potential to reduce poverty incidence in the rural areas of Southern Punjab, Pakistan.

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