Household debt in Pakistan: conflict, borrowing and structural indebtedness
An assessment of household indebtedness, along with the impact of prolonged conflict on household borrowing from the informal credit market
Abstract
Household debt and indebtedness has earned increased attention the world over. In poor countries like Pakistan, expenditures on death and marriage ceremonies, health, education of children and repayment of previous loans remain major reasons for household borrowing from the informal credit market. Along with this, disruption of livelihoods in natural calamities and prolonged conflict has emerged as a further key driver of household borrowing. However, literature on household indebtedness in Pakistan is very scant, despite household borrowing being common in the country. This gap has motivated us to undertake an assessment of the general prevalence and magnitude of household indebtedness in Pakistan, along with the impact of prolonged conflict on household borrowing from the informal credit market, in particular.
This research is part of the Secure Livelihoods Research Consortium (SLRC) programme
Citation
Amin, S., Wajid A., and Baig, I. (2019) Household debt in Pakistan: conflict, borrowing and structural indebtedness. Working paper. London. Secure Livelihoods Research Consortium
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