Objective: To estimate the cost-effectiveness of price subsidies on fortified packaged complementary foods (FPCF) in reducing iodine deficiency, iron-deficiency anaemia and vitamin A deficiency in Pakistani children.Design: The study proceeded in three steps: (i) we determined the current lifetime costs of the three micronutrient deficiencies with a health economic model; (ii) we assessed the price sensitivity of demand for FPCF with a market survey in two Pakistani districts; (iii) we combined the findings of the first two steps with the results of a systematic review on the effectiveness of FPCF in reducing micronutrient deficiencies. The cost-effectiveness was estimated by comparing the net social cost of price subsidies with the disability-adjusted life years (DALY) averted.Setting: Districts of Faisalabad and Hyderabad in Pakistan.Subjects: Households with 6-23-month-old children stratified by socio-economic strata.Results: The lifetime social costs of iodine deficiency, iron-deficiency anaemia and vitamin A deficiency in 6-23-month-old children amounted to production losses of US209millionand175000DALY.Poorhouseholdsincurredthehighestcosts,yetevenwealthierhouseholdssufferedsubstantiallosses.WealthierhouseholdsweremorelikelytobuyFPCF.ThenetcostperDALYoftheinterventionsrangedfromareturnperDALYavertedofUS 783 to $US 65. Interventions targeted at poorer households were most cost-effective.Conclusions: Price subsidies on FPCF might be a cost-effective way to reduce the societal costs of micronutrient deficiencies in 6-23-month-old children in Pakistan. Interventions targeting poorer households are especially cost-effective