Pakistan may feel expensive due to inflation, but globally, it remains among the most affordable countries.

According to the latest rankings by Numbeo, three Pakistani cities are listed among the world’s cheapest places to live in 2025.

Numbeo’s cost of living index ranks 327 cities worldwide, using New York as the benchmark. The index considers factors such as rent, groceries, dining, and other expenses.

The most expensive cities in the world include Zurich, Lausanne, and Geneva from Switzerland, followed by New York in fourth place.

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Other costly cities include Basel and Bern (Switzerland), San Francisco, Honolulu (US), and Reykjavik (Iceland), with Boston ranking tenth.

In contrast, the cheapest city in the world is Coimbatore, India, followed by Alexandria, Egypt.

Among Pakistani cities, Lahore and Karachi are ranked as the third and fourth cheapest cities globally, with living costs 85 per cent lower than Zurich.

Islamabad is ranked 314th, with costs 83 per cent lower than Zurich. Despite local economic challenges, Pakistan’s cities remain among the most budget-friendly places to live.