This document summarizes a study on rural-urban household saving behavior in District Chitral, Pakistan. The study analyzed 100 households each from an urban area (Chitral city) and rural area (Drosh village). It found that income, employment status, and age had a positive effect on savings, while dependency ratio, education level of the head of household, and marital status had a negative effect. In urban areas, income, education, and age were statistically significant factors, while in rural areas income, dependency ratio, employment status, and age were significant. On average, urban households had higher monthly incomes and savings than rural households.

1. Abstract of Emerging Trends in Scientific Research, 2016, Vol.5
DOI: 10.18488/journal.1002/2016.5/1005.5
5th
International Conference on Emerging Trends in
Scientific Research
27-28 February, 2016
Flora Grand Hotel, Dubai
Conference Website: www.pakrdw.com
7
Paper ID: 832/16/5
th
ICETSR
Rural-Urban Household Saving Behavior: A Case Study of
District Chitral, Pakistan
Iftikhar Hussain1
Abstract
The main objective of the study is to find out the saving pattern between rural and urban
households of district Chitral in Province of Khyber Pakhtunkhwa, Pakistan. Accordingly,
household in the city of Chitral have been selected for urban analysis, while rural analysis
is conducted in a village of Drosh. Based on a random sampling, 100 respondents were
selected from each urban and rural area. Analysis is conducted on the effect of major
socio-economic and demographic variables on savings of the households. The results
reveal that income, employment status and age had positive effect on the
households’ saving while dependency ratio, education of the household head and
marital status have negative effect on the households’ saving in both the regions.
Income of the household, education, and age are found statistically significant in urban
area while in rural area, income, dependency ratio, employment status, and age were
statistically significant. The marital status found insignificant for both urban and rural
communities. Household monthly income as assumed was found on an average higher
vis-Ã -vis rural areas. Similar trends were found on expenditure side in both communities.
The main rationale behind high expenditure is because of relatively high cost of education
in the urban area due to existence of private sector in the delivery of social services.
Dependency ratio is found greater in rural area vis-Ã -vis urban area. Thus, average per
month saving was higher in urban area as compared to rural area.
Keywords: Household, Saving behavior.