Discover the cheapest cities of Pakistan to live in 2025

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When we talk about where to live affordably in Pakistan, the numbers explain a remarkable story. As per the worldwide cost-of-living database Numbeo, Pakistan’s Cost of Living Index sits at 17.7 to 17.8 out of 100 in mid-2025 — one of the lowest in the world meaning many cheapest cities of the world are in Pakistan. In plain terms, for many global urban centres, Pakistan is offering some of the most affordable living conditions you are going to find. 

But behind that national figure lie still more affordable pockets — cities where everyday life, housing, dining, and transportation cost significantly less than major Western metropolitan benchmarks. 

Why Pakistan stands out 

At a country level, Pakistan’s cost-of-living index is extremely low by global standards. If New York City is assigned a baseline of 100, Pakistan’s index at 17.8 means the typical basket of goods and services costs roughly 80+ less than in NYC. That’s not to say life is cheap in every sense (wages, infrastructure, quality vary widely) — but for those seeking value, certain Pakistani cities shine. 

Top 10 Cheapest Cities in Pakistan (2025) 

Here’s a ranked list of Pakistani cities that current data suggest are among the most cost-effective places to live. These are approximate rankings based on available indices and lifestyle cost differences. 

1. Karachi: Karachi is a major metropolitan hub, yet its cost-of-living index is about 17.8 for the city. The cost of daily life usable items is quite cheap. 

2. Lahore: Lahore is also extremely affordable; reported index around 17.9. 

3. Rawalpindi: The cost of living in Rawalpindi is slightly higher than Karachi and Lahore, but still among the lowest-cost major cities. (Index around 18.8) 

4. Islamabad: The rent cost in Islamabad is higher than many places, but still low by global terms (Index 20.7)  

5. Faisalabad: Faisalabad is considered to be the Industrial/textile hub; rental cost in Faisalabad is extremely low, and costs of daily life is also low if compared to the main metros. 

6. Multan: It is emerging as a more affordable living option; property costs lower than Lahore’s base. 

7. Peshawar: It offers massively cheaper apartment rents and a lower living-cost baseline if compared with many larger cities like Islamabad. 

8. Sukkur: It is a Smaller urban centre, with lower housing/rent pressures, thus a cheaper day-to-day life. 

9. Quetta: It is Driven by local economic scale and cost structure, makes living more affordable on a comparative scale. 

10. Hyderabad (Pakistan): Not to be confused with Hyderabad, India; one of the more affordable cities in Sindh province, and it is offering value for residents. 

(Note: While some official indices don’t list all these ten individually, the pattern of smaller/mid-sized Pakistani cities being cheaper is confirmed in real-estate and cost-of-living market reports.) 

Read more: IMF predicts inflation in Pakistan to rise again next fiscal year

What this means for everyday life 

When you live in Karachi, Lahore or one of the other cheaper cities listed above, you will notice: 

• Lower rent or housing cost compared to global cities, yet access to urban amenities. 

• Everyday goods (groceries, transport, dining) cost a fraction of what you’d pay in many western countries. 

• Because Pakistan’s national index is so low, even relatively higher-cost cities like Islamabad still offering strong value compared to international norms. 

Important caveats 

• Cost of living is low relative to global urban centres, but so are average incomes in many cases — meaning “cheap” doesn’t always mean “affordable for everyone”. 

• Quality, infrastructure and services (healthcare, schooling, transport) will vary significantly by city and neighbourhood. 

• Data may change quickly; inflation, currency shifts and economic policy can rapidly affect cost levels. 

Read more: Why global companies are packing up and leaving Pakistan?

All-inclusively, if you’re looking for affordability, many Pakistani cities make a compelling case in 2025. The big metros Karachi and Lahore lead the way, while numerous others are offering even more generous cost-of-living advantages.

Whether you’re relocating, budgeting for life in Pakistan, or simply making comparisons for global living costs, the numbers here provide strong evidence: Pakistan remains one of the most affordable places in the world to live.