Food Prices in Pakistan Are World's Second Lowest Despite Inflation

The cost of living in Pakistan is the world's lowest despite recent inflationary trends, according to the Cost of Living Index for mid-2021 as published by Numbeo.  Numbeo Grocery Index reports that the food prices in Pakistan are the second cheapest in the world. In terms of local purchasing power, Pakistan ranks 101 among 139 nations. 

Cost of Living Map. Source: Numbeo

For overall cost of living as measured by Numbeo, Pakistan ranks 139 among 139 countries of the world. It is cheaper to live in Pakistan than to live in any of its neighboring countries in South Asia or West Asia. India ranks 138, Afghanistan 136, Bangladesh 115 and Iran 87. 

Local Purchasing Power (LPP) is a measure of relative purchasing power in buying goods and services in a given city for the average net salary in that city. If domestic purchasing power is 40, this means that the inhabitants of that city with an average salary can afford to buy on an average 60% fewer goods and services than New York City residents with an average salary.  Pakistan (LPP of 24.56) ranks 101 among 139 countries for Local Purchasing Power. India (42.16) ranks 52, Bangladesh (21.76) 111, Afghanistan (20.53) 112 and Iran (16.82) 124. Switzerland (102.77), the United States (94.32) and Australia (91.07) top the list in terms of local purchasing power. 

Cost of Living Rankings. Source: Numbeo

For food prices, Pakistan ranks 138 among 139 countries ranked. Only Afghanistan ranks below Pakistan at 139 on Numbeo Groceries Index. India ranks 129 and Bangladesh 112. 

Monthly Cost of Food Per Person in Pakistan. Source: Numbeo

Using a basket of Asian food types, the cost of feeding one person in Pakistan with a healthy, balanced diet of 2400 daily calories works out to Rs. 10,364.55 for a month, much lower than Rs. 13,635.77 (INR 6201.40) in India. It consists of bread, rice, meat, eggs, fruits and vegetables.  The most expensive components of the food baskets are chicken and beef. Reducing the amount of meat can help bring the cost of the meal further down.  At Rs. 15,248.41 per month, the cost of western food basket is about 50% higher but still significantly lower than Rs. 19,233.35 (INR 8747.13) in India.   

Pakistan is among world's top 10 food producing countries. After a wheat and sugarcane shortfall last year, there are reports of record production of wheat and corn in Pakistan this year. Higher domestic production will hopefully help contain food price inflation in coming months. 

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Bangalore & Mumbai Cheaper Than Karachi

It costs less to live in Bangalore, India's high-tech capital, and Bombay, India's financial capital, than to live in Pakistan's megacity of Karachi, according to the 2016 Economist Intelligence Unit (EIU) report. The survey says Karachi's cost of living index is 44 while Bangalore's is 42 and Mumbai's 43. The survey bases it on New York City's cost of living set at 100. Lusaka, Zambia, is the cheapest with cost of living index measured at 41.

World's Cheapest Cities Source: EIU. Courtesy: Metro

In fact, there are four Indian cities and just one Pakistani city among the cheapest cities in the world, according to the latest EIU survey. The complete list of the World's Cheapest Cities is as follows:

1. Lusaka, Zambia
2. Bengaluru (Bangalore), India
3. Mumbai (Bombay), India
4. Almaty, Kazakhstan
5. Algiers, Algeria
6. Chennai (Madras), India
7. Karachi, Pakistan
8. New Delhi, India
9. Damascus, Syria
10. Caracas, Venezuela

Seven of the world's cheapest cities are in Asia, one in South America and two in Africa.

The EIU surveyed 133 cities and measured the cost of 160 items. These include food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs.

The survey allows for city-to-city comparisons, but for the purpose of this report all cities are compared to a base city of New York, which has an index set at 100. The survey has been carried out for more than 30 years.

EIU ranks Singapore (index 116) as the world's most expensive city. It's followed by Zurich (114), Hong Kong (114), Geneva (108), Paris (107), London (101), New York (100), Seoul (99), Copenhagen (99) and Los Angeles (99). Three of the top 10 most expensive cities are in Asia, 5 in Europe and 2 in the United States, and none in Africa.

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