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Poverty is a complex and multidimensional phenomenon. The poor are not a homogeneous group. Various approaches to defining poverty can lead to identification of different groups of poor. Therefore, a holistic approach is needed to deal with the problem of poverty. However, countries with widespread poverty face financial and other resource constraints. This may require setting priorities in terms of dealing with various dimensions of poverty, which may not be easy given the fact that various dimensions of poverty are closely linked with each other. Therefore, it is a daunting challenge for each country to formulate an effective poverty reduction strategy according to its own needs and circumstances. In line to this fact poverty is multidimensional, the unidimensional approach is not always sufficient to account for all the facets of this phenomenon. A multidimensional analysis therefore becomes necessary if we truly want to identify the poor, as well as the strategies to combat this burden.