Why is Karachi among the cheapest cities in the world?

Karachi ranks sixth in the list of cheapest cities in the world. What are the factors on the basis of which Karachi has been declared cheap?

The Economist Intelligence Unit, the Economist’s research and analysis arm, surveyed 174 cities around the world this year to assess inflation and its impact on people. According to the survey, prices of basic necessities and food in local currency terms in the world’s major cities increased by an average of 8.1 percent over the past year, the highest level in the past 20 years, led by Ukraine. War and China’s Covid-19 restrictions are being reported.

According to the survey report, the cheapest city in the world is Damascus, the capital of Syria, followed by Tripoli in Libya and Tehran in Iran. While Karachi, the largest city of Pakistan, has been presented as the sixth cheapest city in the world.

Dr. Ashfaq Hasan, an expert in economic affairs, while talking to Deutsche Welle, said that this seaside city is also known as the poor-loving city. He said that people from all over the country go to Karachi for employment.

Economic affairs analyst Samiullah Tariq told Deutsche Welle that the IEU report is correct. Karachi is a really cheap city compared to the big cities of the world. He said that one of the reasons for this is the falling value of the rupee. The exchange rate of the dollar and other countries’ currencies is high. He said that even because the tax system in Karachi is not improved, housing in this city is cheaper than other cities.

Analyst Rehan Atiq while talking to Deutsche Welle said that this is true in the sense that things from 100 rupees to 1000 rupees are available in Karachi city. He said that for example biryani can be found for 100 rupees and is being sold for 450 rupees in the city. Along with this, basic goods in the city of Karachi are cheaper than other cities.

According to senior journalist Bilal Ahmed, Karachi has a special status of its own. There are numerous markets in this city, people from all over the country visit this city for shopping. This city with ports provides so much convenience to the buyer that the buyer can buy good quality and cheap from this city.

He said that there are many options to buy anything in terms of quality in Karachi, “posh areas, middle class and lower middle class, this city has all kinds of markets.”

He added, “Similarly, Karachi’s housing system is also unique. Where there are expensive hotels to spend the night here, you can get four pies for a night for 150 rupees. A monthly rental house is available for Rs 2,000 to Rs 30,000. Similarly, a one-time meal is available for 3 thousand and up to 65 rupees.

He further said that on the contrary, there are facilities in other cities including Lahore, Faisalabad, Peshawar and Islamabad, but accommodation and food there are expensive and limited compared to Karachi.

According to the report, the most affected by inflation are Istanbul in Turkey, Buenos Aires in Argentina and Tehran, the capital of Iran. In the city of Caracas, Venezuela, the rate of inflation was seen at 132% during one year.

According to the report of The Economist Intelligence Unit, Singapore is the most expensive city in the world this year, as in the past several years, but this time New York is also on top. Among the most expensive cities in the world are Tel Aviv, Hong Kong, Los Angeles, Zurich, Geneva, San Francisco, Paris, Copenhagen and Sydney.