Study. The impact of tobacco consumption in poor households in Pakistan

Pakistan has high rates of tobacco use and tobacco-related diseases. In addition, tobacco use constitutes a significant share of household expenditure. High tobacco expenditure leads to reduced spending on other essential household needs (housing, health, education) and has a direct impact on well-being and poverty reduction.

A study[1] led by the Center for Social and Development Policies Pakistan's first study analyses the impact of tobacco expenditure on household resource allocation. The study draws on data from quantitative household consumption surveys in Pakistan in 2015-2016. Of the 24,238 households included in the study, 13,403 did not consume tobacco and had a monthly income of Rs 34,284 (Rs 173^e). Among tobacco users, 7,627 poorest households had a monthly income of Rs 26,318 (Rs 132^e).

Main conclusions of this study :

• Tobacco use was associated with lower shares of the budget allocated to health, education and housing expenditures, particularly for poorer households. Non-smoking was associated with up to 80% additional expenditure on education.
• Poor tobacco-using households allocate as much or slightly more budget to tobacco than to education or health.
• A reduction in tobacco spending leads to an increase in household spending on basic food products, health, education, housing, household durables and leisure.
• Simulation analysis suggests that a reduction in tobacco expenditure of 50% on average would induce an average increase of 18 in expenditure on essential goods and services (health, education, housing), consumer durables and leisure.

The findings of this study highlight the importance of tobacco control policies in Pakistan to reduce tobacco consumption and alleviate poverty in the country. According to the authors, integration of tobacco control policies are integral parts of poverty reduction policies and programs.