Here Are the 10 Most Expensive Cities in Pakistan

State Bank of Pakistan has revealed an interesting set of data through its Inflation Monitor report for June 2016. According to their findings, Abbottabad has become the most expensive city in Pakistan.

The Inflation Monitor records data for 40 cities and ranks them based on inflation rates on different commodities.

Abbottabad witnessed the highest inflation rate during the past month. A year-on-year inflation rate of 8.8 percent was observed in the general inflation category.

The stats include a 4.4 percent inflation on food items and 11.8 percent on non-food items.

High inflation rates were recorded in some other cities as well. Abbottabad was followed by Turbat with 6.0 percent inflation, Faisalabad with 5.5 percent, Jhang with 5.4 percent and Karachi reportedly had an inflation rate of 4.7 percent.

High inflation cities pakistan june 2016

During the same period, Dadu, a small city in Sindh, secured the title of being the cheapest city in the country. It recorded no inflation at all. Food inflation was negative 1.4 percent and inflation rate on non-food items was 0.9 percent in June.

Dadu is followed by Hyderabad with 0.1 percent, Lahore with 0.8 percent, D.I Khan with 1.9 percent and Peshawar reported an inflation of 1.2 percent.

Low inflation cities pakistan june 2016

Among federal and provincial capitals (Islamabad, Karachi, Lahore, Quetta and Peshawar), Lahore had the least inflation rate due to a 1.4 percent reduction in food item prices while non-food items stood at 2.7 percent. Karachi was the most expensive with 3.2 percent and 5.7 percent on food and non-food items respectively. The inflation rates were generally below the country’s average rate in all capitals except Karachi.

Overall inflation was recorded as 3.2 percent for June 2016. However, SBP’s new monetary policy predicts an average inflation between 4.5-5.5 percent during the next fiscal year. The results will still be dependent on oil prices and fiscal slippages.

He is the Editor at ProPakistani.


    • Inflation is not about absolute price of commodities, but the change in prices.

      Suppose in Karachi, Commodity A cost Rs 1; Same commodity cost Rs 10 in Islamabad.
      Suppose after one year the price in Karachi becomes Rs 2 and in Islamabad becomes Rs 11.

      The change in Karachi is 100%, however, in Islamabad only 10%

      • Thats true, but its the problem with calculation and there is no way to deal with this problem. However, disagree on assumption as it is not possible that commodity A cost Rs 1 somewhere and Rs. 100 at other place. Normally, Commodity A cost Rs. 200 at one place and Rs. 250 at another. little gap.

    • This report did not say which city is expensive and which is not. This is all about inflation rate.

  • drawing room numbers, far away from the reality, Sialkot is much expensive than any other city. thank you state bank for your efficiency !!!

  • Ironically, karachi is world cheapest cosmopolatian but on no 5 in sbp’s list of most expensive cities.

  • So you’re telling me that Islamabad is among the cities having lowest inflation rates? Well, done Sir!
    We need more of such researches.

  • Haven’t read the article, but If you are from Karachi and you have visited Quetta, you know that Quetta is more expensive. My family lives in khi and now I am living in Quetta, and if you compare price of everyday things (including food, grocery, etc) you’ll Quetta is more expensive then Karachi.

  • Inflation is not about absolute price of commodities, but the change in prices.

    Suppose in Karachi, Commodity A cost Rs 1; Same commodity cost Rs 10 in Islamabad.
    Suppose after one year the price in Karachi becomes Rs 2 and in Islamabad becomes Rs 11.

    The change in Karachi is 100%, however, in Islamabad only 10% :)

  • Irony is whole lot of people doesnt understand the eco system will comment under thread according to their BELOVED city.

  • This is not about the price. This is all about the inflation rate. Think twice before criticise.

  • Title is totally misleading with the stats……… should have been the cities with most inflation in last one year….

  • Karachi most expensive among provincial capitals. I Shocked (asp. above data). I think it as most inexpensive one, and still I affirm it.

  • Best Pakistani website with original content and latest tech news. Better than most news channels sites. Love you ProPakistani guys for putting so much effort. keep it up. ?

  • I was surprised to see Karachi at the number 5 spot on the list of expensive cities in the country.

    Previously, Economist Intelligence Unit (EIU) had recognized Karachi as the cheapest city in the world for two consecutive years. However, they (EIU) took account of only 133 cities in the world.

    Thus, the fact released by SBP makes sense to me.


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