In a recent ranking by the global database company Numbeo, Karachi, Lahore, and Islamabad have been identified as some of the most affordable cities in the world, according to the Global Cities’ Cost of Living Index 2024.
Compiled by Numbeo, the world’s largest database of user-contributed information on cities and countries, the index ranks Pakistan’s three major urban centers—Karachi, Lahore, and Islamabad—among the lowest on the list.
This notable difference becomes evident when compared to the world’s most expensive cities, with Geneva, Zurich, and New York at the top of the list.
Karachi
Karachi, known for its bustling port and vibrant atmosphere, has been highlighted as the most affordable city in the world according to the index. The Cost of Living Index for Karachi stands at 19.0, reflecting its low overall living expenses. The Rent Index is notably low at 2.9, which significantly contributes to its combined Cost of Living and Rent Index of 11.3.
Additionally, the city’s Groceries Index is 17.6, indicating relatively low grocery prices. The Restaurant Price Index is 13.1, suggesting that dining out is also inexpensive, while the Local Purchasing Power Index is 28.0, showing that residents have a decent amount of purchasing power relative to local costs.
Lahore
Lahore, which is Pakistan’s second-largest city, is positioned just after Karachi on Numbeo’s list of the world’s most affordable cities. It has the same Cost of Living Index as Karachi, which is 19.0, indicating similarly low overall living expenses. The Rent Index is also identical at 2.9, resulting in a combined Cost of Living and Rent Index of 11.3.
However, Lahore’s Groceries Index is slightly lower at 16.3 compared to Karachi, suggesting marginally cheaper grocery costs. The Restaurant Price Index for Lahore is 15.7, reflecting affordable dining options, while the Local Purchasing Power Index is 27.3, showing that residents have a reasonable amount of purchasing power relative to the city’s cost of living.
Islamabad
Islamabad, the federal capital, is positioned fourth from the bottom on the list. The city has a higher Cost of Living Index compared to Karachi and Lahore, at 21.5, and a Rent Index of 5.3, resulting in a combined Cost of Living and Rent Index of 13.7. The Groceries Index for Islamabad is 19.5, the Restaurant Price Index is 14.6, and the Local Purchasing Power Index is 36.2.
In previous reports, Karachi was also highlighted as the world’s second riskiest city by Forbes, while Lahore is known for its severe pollution and smog, which has negatively impacted its global city rankings.
