You Won’t Believe How Cheap Life Is in These Cities!

Karachi, Lahore & Islamabad: The World’s Cheapest Cities in 2025

Living costs are rising worldwide, but some cities remain incredibly affordable. According to the latest Global Cost of Living Index 2025, Karachi, Lahore, and Islamabad rank among the world’s cheapest cities. These Pakistani cities offer an exceptionally low cost of living, making them ideal for budget-conscious residents and expats. Let’s dive into what makes these cities so affordable.

1. Karachi – The Most Affordable City in the World

Karachi, Pakistan’s largest city, has been ranked the cheapest city globally in 2025. The city’s affordability is driven by:

• Low Rent Prices – Average rent for a one-bedroom apartment in the city center is around PKR 30,000 ($100) per month.
• Inexpensive Groceries – A basic grocery basket costs nearly 50% less than in Western countries.
• Affordable Transport – Public transport and ride-hailing services are extremely cheap, with an average fare of PKR 300 ($1) for short distances.

2. Lahore – A Low-Cost Hub for Culture & History

Lahore, Pakistan’s cultural capital, ranks just behind Karachi in affordability. The city offers:

• Budget-Friendly Dining – A full meal at a mid-range restaurant costs around PKR 500 ($1.70).
• Cheap Housing Options – A one-bedroom apartment costs between PKR 25,000 to 40,000 ($83-$133) per month.
• Low Utility Bills – Monthly utility costs (electricity, water, heating) average around PKR 10,000 ($33).

3. Islamabad – A Capital City with a Low Cost of Living

Despite being the capital, Islamabad remains highly affordable compared to global standards. The key factors include:

• Low Rent Costs – A one-bedroom apartment costs PKR 40,000 ($133) per month in prime locations.
• Affordable Groceries – Fresh produce and local goods are 40% cheaper than in many international cities.
• Healthcare & Education – Public healthcare and education are either free or significantly subsidized.

Why Are These Cities So Cheap?

Several factors contribute to Pakistan’s low cost of living:

• Weaker Currency – The exchange rate makes living expenses lower for foreign earners.
• Local Production – Most essential goods are produced locally, reducing import costs.
• Lower Labor Costs – Wages and service charges are much lower than in Western countries.

Final Thoughts

If you’re looking for an affordable place to live in 2025, Karachi, Lahore, and Islamabad should be on your list. These cities offer low rent, cheap food, and budget-friendly transport, making them some of the most economical places in the world.