Is Consumption Pattern Homogeneous in Pakistan? Evidence from PSLM 2007-08.

This study has analysed consumption behaviour of households across the four provinces of Pakistan using recent household survey data of 2007-08. It is found that the consumption patterns are not entirely homogeneous across all 4 provinces and also diverge across the urban-rural sectors within each province. The study has also examined the role of remittances in determining the level and distribution of household consumption expenditures, across all four provinces, by comparing the consumption behaviour of those households who received remittances versus those who did not. We found that households receiving remittances spent proportionately more on education in all provinces except Balochistan; while they spent proportionately less on food and drinks and transport and communication. In terms of the other expenditure categories, differential impact of remittances is observed across provinces.