The objectives of this report are two fold: first, determine the extent of variation among districts in the level of social development and second to examine in the spatial context for Pakistan how strong the relationship is between levels of economic and social development and what explains regional differences in the level of social development. The former will help us in particular in identifying districts which have a low ranking within the country in terms of the level of social development. These districts can be targeted for special development allocations within the SAP to reduce the extent of regional disparity in terms of access to basic services like primary education, health, water supply, etc. If it emerges that the socially underdeveloped districts are also economically backward then the underlying reason may be the absence of a strong private sector or the absence of a local tax base or income affordability to finance the provision of these services. As case can then be made for transfer of resources to such regions.