This paper details both the steps taken in computing, and the methodology involved in an objective assessment of poverty throughout the regions of Pakistan. This includes a number of key steps, including identification and selection of candidate variables, the estimation of consumption models, and then using these in an econometric model to predict poverty. The poverty line for 2004-05 has been estimated as Rs.878.64. By identifying the areas of greatest need and the geographical and spatial factors therein, the targeting of poverty reduction programmes can be improved as well as the effectiveness of policy intervention. Two data sets have been used for computing the incidence of poverty at the district level: the Household Income and Expenditure Survey (HIES) and the Core Welfare Indicators Questionnaire (CWIQ) survey.