This study analyzes the redistributive effects of public expenditures in Pakistan by employing the recent information from PSLM survey data provided by Pakistan Bureau of Statistics for the year of 2010-11. The analysis is done at the household level by using the econometric method of structural quintile treatment effect regression. The proposed method allows us to look at the complete picture of the effect of the public expenditures on households with different income and abilities. The study compares the households with different needs by means of adult equivalence scale. We considered the in-kind income transfers which related to health care services and educational services. The results reveal that the redistributive power of in-kind income transfers are heterogeneous but are limited. Hence it has been suggested that policy makers should be conscious regarding the composition and magnitude of government expenditures on provision of education and health care expenditures benefit to lower income quintiles. Supervisor:- Dr. Eatzaz Ahmed