Abstract
This study analyzes the households’ consumption patterns and demand elasticities of Balochistan in both the urban and rural areas. We make use of the Household Integrated Expenditure Survey (HIES) of Pakistan for the year 2005-6. The linear-log models are applied for the analysis of households’ consumption patterns. The LA/AIDS model is used in order to estimate the demand elasticities. The study shows that the households’ expenditure on food items is increasing at decreasing rate. All the food items are considered as necessity except in the case of vegetable ghee for urban and rural Balochistan. The high expenditure elasticities of several food items e.g. wheat, milk, beef and vegetable ghee call for food support programs, different agriculture policies like subsidies on electricity for water irrigation, pesticides, etc. The major share of total expenditure is devoted to wheat consumption than other food items.