The latest global economic data reveals significant challenges for Pakistan’s largest financial hub. Karachi has been ranked among the ‘least-liveable cities in the world’, ranking 170th among 173 cities on the Economist Intelligence Unit’s annual Global Liveability Index 2026. This ranking highlights severe structural and security issues within the metropolitan area.
The international report places very few global cities below the Pakistani mega-city. The only cities ranked below Karachi include Dhaka, Tripoli and Damascus, while war-torn Tehran (164) and Kyiv (166) scored slightly higher. According to EIU, issues such as congested roads and crime tend to punish the index’s biggest cities.
How the Ranking System Works
The EIU’s ranking, which evaluates living conditions across 173 cities, provides a globally recognised benchmark for urban liveability and resilience. It measures measuring indicators such as stability, healthcare, culture and environment, education and infrastructure, and quantifies the challenges presented to an individual’s lifestyle in any given location.
Karachi struggled heavily across almost all evaluated categories. Getting an overall score (out of 100) of 43 — the same as Algiers — Karachi’s scored poorly in nearly all metrics, except education. It scored 20 on stability, 54 on healthcare, 36 in culture and environment, 75 in education and 52 in infrastructure.
Geopolitical Tensions Impact the Middle East
The report also shows that wider regional conflicts heavily influenced urban scores this year. Cities in the Middle East hit by the US-Iran war also suffered in this ranking, with urban centres like Muscat, Kuwait City, Doha and Manama sliding down several places.
A few specific Gulf cities experienced unprecedented declines due to recent military tensions. After a series of Iranian drone strikes, Muscat fell 14 places to 123rd — the biggest drop of all. Doha, a magnet for expats, dropped seven spots to 108th. Dubai and Abu Dhabi each fell four places to 79th and 76th, respectively.
The World’s Most Liveable Urban Centers
In contrast, European and Pacific cities continue to dominate the top tier of the index. Among the most liveable cities, Copenhagen continued its run at the top spot, followed by Vienna and Melbourne. Vancouver (9) is the only North American city in the top ten, and Tokyo (10) was the only megacity.
