Household food demand in Pakistan: A provincial analysis

Abstract

In developing countries of the world, the pattern of food consumption is usually used as a benchmark for measuring the living standard of people. This paper examines and compares the food expenditure pattern of households across provinces in Pakistan using 2011-12 household integrated economic survey(HIES) data. The study used the linear approximate almost ideal demand system (LA-AIDS) to estimate food demand elasticities. The patterns of food consumption and expenditure for eight food groups: wheat flour, rice, dairy, pulses, meats, fruits and vegetables, cooking oil and other foods are examined. The study observed differences in household consumption patterns across provinces. The estimated results show that all food groups have negative own price elasticities and are consistent with economic theory. All the expenditure elasticities are positive and significant indicating that all food groups are normal. The expenditure elasticities estimated show that dairy and meats are luxury foods in all provinces, while wheat flour, pulses, cooking oil, and other foods are necessities in the diet of the Pakistani households. In all provinces, a household spends most of its food expenditure on dairy products, wheat flour, cooking oil, fruit and vegetables. The estimates suggest that policymakers in Pakistan should ensure and monitor the availability of these essential food items in order to reduce undernourishment and food insecurity in the country.