This paper estimates the extent of undernutrition in urban Pakistan in terms of calorie consumption after controlling heterogeneity in household characteristics. It also evaluates the sensitivity of price and income shocks on incidence, depth and severity of undernutrition. Approximately 27 percent incidence of urban undernourishment or food poverty is computed from the Household Integrated Economic Survey data of 1996- 97. The results also reveal low magnitudes of depth and severity of undernutrition.