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Regulatory Framework and Behavioural Issues in the Informal Khokhas’ Markets in Pakistan (Article)

Author

Listed:
  • Anwar Shah

    (Associate Professor, School of Economics, Quaid-i-Azam University, Islamabad.)

  • Tehseen Ahmed Qureshi

    (Senior Research Analyst, International Food Policy Research Institute (IFPRI), Pakistan.)

Abstract

Khokha (Kiosk) is a major part of informal markets and is widely observed across the globe and in Pakistan. Khokhas are one of the major sources of market-based poverty alleviation and absorb a significant number of labour force. However, on average Khokhas in Pakistan are in shabby states, which arise a question about its regulatory framework. Whether any regulatory framework of Khokhas prevails in Pakistan and to what extent it facilitates or hinders entry. To find an answer to these questions, we collect data from secondary and primary sources and find that, there exists no legal framework to obtain a license for establishing Khokhas in Pakistan. People set up a Khokha with a constant fear of demolishment, fines, confiscation, and arrest. We also find that the harassment of current vendors from public authorities is a major behavioural barrier for prospective entrants. Based on the other countries’ best practices, we propose a detailed set of policies for creating a formal legal framework for khokhas across Pakistan.

Suggested Citation

  • Anwar Shah & Tehseen Ahmed Qureshi, 2022. "Regulatory Framework and Behavioural Issues in the Informal Khokhas’ Markets in Pakistan (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(2), pages 153-168.
    • Handle: RePEc:pid:journl:v:61:y:2022:i:2:p:153-168
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    References listed on IDEAS

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    More about this item

    Keywords

    Khokhas; Barriers to Entry; Informal Markets; Legal Framework;
    All these keywords.

    JEL classification:

    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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