This study conducts evidence based research to help advocacy in the sanitation sector. It aims to empirically estimate the economic impacts of current poor sanitation conditions in Pakistan as well as the economic benefits of options for improved conditions.
- The current status of sanitation and poor hygiene practices has led to significant public costs, such as premature deaths, economic and financial costs due to diseases attributable to poor sanitation, environmental costs, and other welfare costs.
- The total economic cost of poor sanitation for the year 2006 was estimated as 343.7 billion PKR (US$5.7 billion). This amount is equivalent to 3.94 percent of GDP in Pakistan.
- The water-related economic cost of poor sanitation is estimated as 15.98 billion PKR (US$262.68 million).
- Other welfare losses, such as user preferences and time loss, are estimated as 22.77 billion PKR (US$374.4 million).
- Priority treatment needs to be given to the issue of poor sanitation at all administrative levelsÃ¢â‚¬â€local, provincial, and nationalÃ¢â‚¬â€and investments should be made to build moderately improved and hygienic latrines in both urban and rural areas.