Vocational Training is one of the crucial elements for generation that is going to be a part of skilled workforce ofthis world of work and to reduce the level of poverty. It quickly enables a person to be a part of competitiveworkforce by enhancing their skills so that he may cope with the rapidly changing technological job andenvironment. The core objective of this study is to examine the relationship between Vocational Training andPoverty Alleviation through moderating role of Foreign Funds. Billions of rupees are being utilized byinternational donors in technical and vocational education to enhance the skills of individuals and to increase thelevel of income. The method used in this research is simple random sampling technique and 7 big cities ofsouthern Punjab were included. Significance result has been extracted from Southern Punjab where these fundsare being utilized and moderation has been proved that there is significant role of foreign funds to boost up thevocational training which alleviate the poverty. To this end the study it proves that there is a significance impactof Vocational Training on Poverty Alleviation and also generated competitive human capital for economicdevelopment.