Consumer Food Price Subsidies in Pakistan
Consumer food price subsidies have been a feature of Pakistan’s economy since World War II. They operate through a system of government-licensed, privately owned ration shops that sell fixed quantities of wheat and sugar. They were initiated, not in response to an existing nutritional need, but as a way of allocating essential consumer items in the face of wartime shortages of goods and transport. The system has persisted to the present, however, with beneficial results for the level of food consumption of the population.
KeywordsRation System Price Elasticity Income Elasticity Subsidy Program Planning Division
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