There is a growing concern, in developing and transition economies that spatial and regional inequality, of economic activity, incomes and social indicators, is on the increase. Regional inequality is a dimension of overall inequality, but it has added significance when spatial and regional divisions align with political and ethnic tensions to undermine social and political stability. Despite these important popular and policy concerns, surprisingly there is little systematic and coherent documentation of the facts of what has happened to spatial and regional inequality over the past twenty years. This paper is an attempt to meet this gap and provides changing scenarios of multi-dimensional intertemporal spatial inequality and level of development in Pakistan during early 1980’s and late 1990’s.