This policy brief is based on a research study entitled ‘The Impact of Tobacco Use on Household Consumption Patterns in Pakistan. It shows that tobacco‑using households spend significantly less on essential goods and services than non‑users, with strong evidence of a crowding‑out effect. Reducing tobacco expenditure frees resources for food, health, education, housing, and other needs – particularly among poorer households. It is proposed that tobacco control measures be integrated into poverty reduction policies and plans.