The poverty line remains the best tool that is used in order to estimate levels of poverty existing in a given society. It is described as the lowest standard that a person requires to earn so as to be able to earn enough to feed himself, clothe himself and get a roof over his head. The concept of the poverty line is complex and faces many challenges:

Importance:

Policy Formulation: These data help governments formulate and implement poverty eradication policies as well as map poverty line.
Resource Allocation: It assists in proper utilization of resources available to fight poverty related problems.
Monitoring Change: Explanation of How Poverty Level Changes Over Time Can Help Us Understand Something about the Effectiveness of Government Policies
Issues:
Subjectivity: The passing of the poverty line involves several generalized and subjective decision making about what constitutes basic.
Regional variation: The conditions of and needs for relief vary from one region to another in one country and hence are very much W/B between areas.
Changing Nature of Poverty: Its approach is subjected to change such as inflationary.change, change in the rates of growth, and change in social order.
-Data Quality: Cross sectional survey data is most useful in assessing the income and consumption expenditure of households, but invariably some issues of data quality arise.
-Multidimensional Poverty: However, the means poverty, also known as income poverty, is well provided notwithstanding other dimensions are education, health, social exclusion, etc.

To do this it could entail the coming up of multi dimensional poverty index that could include things like income, health, education and basic service. It is also necessary to have time to time revision and modification of the poverty line so that it may be in harmony with the economical and social change.