What’s the cost of living in Pakistan?

29 Aug 2023 - Category: Blog / Local regulation

From ancient heritage sites to snow-capped mountains, Pakistan is an affordable destination for history and nature lovers. A beautiful country is known for its delectable cuisine, diverse cultural history and breathtaking valleys in the north.

Wondering what the cost of living in Pakistan is and how it compares with other countries around the world?

Whether it’s for relocation or genuine curiosity, this article might help you find some answers.

In 2023, the inflation rate in Pakistan hit just over 25%. While the inflation rate seems to be dropping now [Statista], an inflation rate this high means a steady rise in how much it costs to buy basic goods and services for people living in Pakistan.

We’ve summarised everything you need to know about the cost of living in Pakistan and compared it to a few other countries for your convenience.

Here, we are going to cover:

What is the average cost of living in Pakistan?

According to Salary Explorer, the average salaries in Pakistan range from around PKR 32,000 per month (minimum salary) to PKR 365,000 per month or higher depending on the individual's experience and industry.

The mean average salary sits at about PKR 81,800 per month.

The cost of living, on the other hand, is roughly the same across Pakistan, except for the capital, Islamabad.

Compared to other cities, the cost of living in Islamabad is slightly more expensive [Cost of Living Reports].

The average Pakistani household spends around:

36.6% on food and groceries
16.8% on rent
13.4% transportation
12.6 % eating out at restaurants
8.3% bills and utilities
8.3% sports and leisure activities
4% clothes and shoes

The cost of living in Pakistan compared to other countries

Here are some examples of prices in Pakistan compared with other countries:

	Pakistan	India	USA	UK
Average monthly salary	₨81,800 ($518.56)	₨31,900 ($430.62)	$3,664	£1,950 (42721.04)
Estimated average monthly costs for a family of four	₨100,000 - 150,000 ($1,453)	₨111,739 ($1,545)	$4,611	£3,632 ($5,132)
Estimated average monthly costs for a single person	₨50,000 - 60,000 ($612)	₨47,501 ($657)	$2,602	£2,034 ($2,875)
A litre of milk	₨190 - 210 ($0.70)	₨52 ($0.73)	$0.88	£0.82 ($1.16)
12 eggs	₨240 - 260 ($0.92)	₨73 ($1.01)	$2.94	£2.48 ($3.50)
Estimated average monthly rent for 85 m2 (900 sqft) in a normal area	₨45,000 - 50,000 ($256)	₨19,892 ($275)	$1,545	£1,101 ($1,556)
Estimated average utilities per month for 2 people in an 85m2 flat (900 sqft)	₨30,000 - 35,000 ($73)	₨4,541 ($63)	$111	£145 ($204)

If we directly compare Pakistan with the UK, the cost of living in Pakistan is 69.62% lower than in the United Kingdom (without rent).

The rent in Pakistan, on average, is 86.19% lower than in the United Kingdom [Numbeo].

In general, as you can see, the cost of living in Pakistan and India is fairly similar. However, the estimated living costs are far higher than the average salary especially during high inflation periods.

In such trying times, many overseas Pakistanis step in to provide support to their family and friends.

Pakistanis living abroad send USD, GBP, Euros from all over the world to pay off loans and cover medical bills/tuition fees. Many, who have parents in Pakistan, send funds to cover Hajj/Umrah travel expenses of their parents.

In addition to that, the conversion rate of USD to PKR, GBP to PKR and Euro to PKR creates a favourable ground for overseas Pakistanis to invest in agricultural land, housing and businesses back in Pakistan.

Looking for a second home back home? Planning to arrange an Umrah trip for your parents/loved ones?

Now could be the best time to send money to Pakistan for a long-term investment.

Exploring city variances and affordability

Pakistan, with its diverse landscapes and rich cultural heritage, offers a cost of living that varies significantly across its major cities.

The country's economic and cultural hubs, along with its smaller towns, each present unique opportunities and challenges in terms of expenses.

Let's explore the cost of living in Pakistan's prominent cities.

Karachi: As the financial capital and largest city of Pakistan, Karachi boasts a bustling atmosphere and a wide range of amenities. While it offers numerous employment prospects and a vibrant lifestyle, the cost of living is relatively higher compared to other smaller cities. Accommodation, transportation, and dining out can be more expensive here, reflecting the city's status as an economic centre.

Lahore: Known as the cultural heart of Pakistan, Lahore strikes a balance between modernity and tradition. The cost of living in Lahore is generally lower than in Karachi, making it an attractive destination for many.

Housing and daily expenses, including food and transportation, are often more affordable, making Lahore an appealing choice for those seeking a lower cost of living without sacrificing urban conveniences.

Lahore is also the culinary centre of Pakistan and a great place to try mouth-watering Pakistani cuisine such as naan channay and payey!

Islamabad: As the capital city, Islamabad offers a unique blend of natural beauty and a well-planned urban landscape. While housing costs in some upscale areas can be higher, the overall cost of living in Islamabad is generally considered moderate.

The city's green spaces and clean environment add to its appeal, making it a preferred destination for many expatriates and diplomats.

Rawalpindi: Adjacent to Islamabad, Rawalpindi provides a more budget-friendly alternative for those looking to live close to the capital without compromising on scenic mountain views.

The cost of living here is relatively lower than Islamabad, with affordable accommodation options and reasonable expenses for daily necessities.

Faisalabad: As an industrial city and a major textile hub, Faisalabad offers a cost of living lower than that of the major metropolitan areas.

The city's economic focus keeps daily expenses and housing costs at a more affordable level, attracting both locals and individuals seeking opportunities in the textile and manufacturing sectors.

Peshawar: Located near the border with Afghanistan, Peshawar has a unique cultural influence. The cost of living in Peshawar is generally lower compared to larger cities like Islamabad, Karachi and Lahore.

Housing and other living expenses are more affordable, making it an attractive option for those seeking a more relaxed lifestyle.

Quetta: As the capital of Balochistan province, Quetta offers a cost of living that is relatively lower than in other major cities.

The city's picturesque surroundings and mild climate contribute to its appeal. Quetta provides an affordable lifestyle and unique opportunities for those looking for a slower-paced environment.

It's important to note that the cost of living can vary significantly based on personal preferences, lifestyle choices, and individual circumstances.

Whether you prefer the dynamic urban life of Karachi, the cultural richness of Lahore, or the serene surroundings of Quetta, Pakistan has a diverse range of cities to suit various needs and budgets.

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