In a recent report by Numbeo, Karachi, Lahore, and Islamabad have been ranked among the world’s cheapest cities. The list, which determines the Cost of Living Index 2024, is based on data contributed by users from cities and countries worldwide. This ranking places Pakistan’s three major urban centers at the bottom of the list, contrasting sharply with the most expensive cities globally.
Karachi
Karachi, Pakistan’s bustling port city, ranks last on the list. The Cost of Living Index for Karachi is 19.0, with a Rent Index of 2.9. This results in a combined Cost of Living and Rent Index of 11.3. Furthermore, the Groceries Index for Karachi is 17.6, while the Restaurant Price Index and Local Purchasing Power Index are 13.1 and 28.0, respectively. These indices reflect the overall affordability of living in Karachi, where the cost of essential goods and services is relatively low compared to other global cities.
Lahore
Lahore, the cultural heart of Pakistan and its second-largest city, is second-last on Numbeo’s list. The city shares the same Cost of Living Index as Karachi at 19.0, with an identical Rent Index of 2.9. Consequently, Lahore also has a combined Cost of Living and Rent Index of 11.3. The Groceries Index for Lahore stands at 16.3, the Restaurant Price Index at 15.7, and the Local Purchasing Power Index at 27.3. These figures highlight Lahore’s affordability, making it an attractive destination for residents seeking lower living costs.
Islamabad
Islamabad, the federal capital of Pakistan, ranks fourth-last on the list. The Cost of Living Index for Islamabad is slightly higher at 21.5, with a Rent Index of 5.3, leading to a combined Cost of Living and Rent Index of 13.7. The Groceries Index for Islamabad is 19.5, while the Restaurant Price Index and Local Purchasing Power Index are 14.6 and 36.2, respectively. Despite being the capital city, Islamabad remains highly affordable, particularly in terms of groceries and rent.
While Karachi, Lahore, and Islamabad are among the cheapest cities, other global cities like Geneva, Zurich, and New York are ranked as the most expensive by Numbeo. This stark contrast underscores the economic disparity and varying living costs between different regions of the world. Geneva and Zurich, known for their high standards of living and robust economies, have significantly higher costs associated with housing, groceries, and other essentials. Similarly, New York, a major financial hub, reflects high living expenses, driven by steep housing costs and the overall cost of services.
Despite their affordability, Karachi, Lahore, and Islamabad face significant challenges. Karachi was previously named the world’s second riskiest city by Forbes, indicating issues related to safety and infrastructure. Lahore, on the other hand, is notorious for its pollution and smog, which contribute to its poor reputation in global city rankings. These challenges highlight the complexities of living in these cities, where affordability does not necessarily equate to quality of life.
The ranking of Karachi, Lahore, and Islamabad among the world’s cheapest cities by Numbeo offers valuable insights into the cost of living in Pakistan’s major urban centers. While affordability is a significant advantage, these cities must address underlying challenges such as safety, pollution, and infrastructure to improve the overall quality of life for their residents. The stark contrast with the world’s most expensive cities like Geneva, Zurich, and New York highlights the diverse economic landscapes and living conditions across the globe. As Pakistan continues to develop, balancing affordability with improved living standards will be crucial in making these cities more attractive and livable for both residents and visitors.
