The entry of fishing vessels to the coastal waters of Pakistan stands out extra vividly in relation to the ascending number of declining catches of fish in the country. Unlike other reports, which depend only on media, this study which is qualitative employs local stakeholder insights to bring up this issue in its full context in the Pakistani coastal artisanal fisheries sector. Developing it further brings out the complexity of the study and deconstructs the simplistic narratives, showing the multifaceted difficulties the area is going through. The analysis finds that the interaction of poverty and the degradation of resources is complex in its complexity and dynamic nature of the poverty–credit market relationship. This issue could not only resolve the existing inefficiencies in credit and product markets but also pave the way for more effective interactions between the banks and the public. Besides, fishery degradation is not only a single factor of poverty that necessitates comprehensive actions to improve the overall capability of the communities and to treat the root causes.