The Impact of Tobacco Use on Household Consumption Patterns in Pakistan

This Report was written by the Social Policy and Development Centre (SPDC) in Pakistan. The report discusses the impact that tobacco expenditure has on household consumption in Pakistan. The findings complement previous research on the crowding out effect in low- and middle-income countries, which shows that tobacco use results in decreased household spending on other basic needs. SPDC’s report demonstrates the negative effect of tobacco spending, especially on poor households, where a larger share of the budget is spent on tobacco than on health or education. Simulating a decrease in tobacco spending, this research finds that the newly available funds are distributed between basic food, housing, education and other commodity groups. The report concludes that tobacco control policies should be an essential part of poverty reduction efforts.

A Policy Brief based on the report can be found here.