The paper attempts to measure the impact of economic liberalization both to the representative as well as individual households. The integration of regionally disaggregated CGE model with the representative national survey provides a firm basis for the impact assessment of PRSP process that many developing and transitional countries are currently pursuing. The transmission of sectoral relative prices of goods and factors from CGE model to the individual households in microsimulation model makes it possible to measure the consumer prices and income that household are facing and thus providing counterfactual assessment of poverty impact of macroeconomic policies more transparent and robust. This approach has promising application to measure the impact of various macro shocks to the people in the areas of health, education, safety nets, social protection and welfare. The empirical findings from Nepal shows that impact of liberalization were more urban biased compared with the rural households, however the poverty impact of liberalization were found more pronounced than the standard welfare effects measured through equivalent variation.