Covid-19 and Intra-Household Financial Coping Strategies in Pakistan

The study examines the impact of Covid-19 on the financial coping strategies of households using nationally representative data from Pakistan. The results show that households exposed to a severe negative Covid-19 shock have higher odds of using their savings or investments, acquiring formal and informal loans, quitting education of their children, not paying their utility bills and selling their productive and household assets in comparison to the households unexposed to a severe Covid-19 shock. Furthermore, severely impacted female (male) headed households have shown better (poor) financial management in comparison to female (male) headed households not severely impacted by the pandemic. Lastly, rural affected households have higher odds of quitting education of their children and not paying utility bills compared to the urban households. The findings highlight the gravity of the crisis and call for a swift and targeted government response to ensure minimum wellbeing of the households.