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Cost of Living in Pakistan 2025 — City-by-City Breakdown

A detailed look at inflation, real household expenses, and how major cities differ.

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Introduction

As Pakistan steps into 2025, the cost of living has become one of the most discussed topics across households. Rising fuel prices, increased utility rates, and fluctuating food costs have changed how families plan their monthly budgets. Whether you’re a student, job holder, business owner, or overseas Pakistani planning to return, understanding the true cost of living is essential.

This article provides a clear, city-by-city breakdown, backed with real examples, data patterns, and household case studies to help you understand where Pakistan is heading economically.

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Why the Cost of Living Is Rising in 2025

1. Continuous Inflation & Rupee Instability

The Pakistani rupee has faced volatility for years. With international price fluctuations and rising import costs, almost everything—from groceries to electronics—has become more expensive.

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2. Increased Utility Prices

Electricity, gas, and petrol costs have surged due to:

• IMF agreements
• Fuel price adjustments
• Circular debt crises

These directly impact monthly expenses for every household.

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3. Urbanization & Housing Demand

Cities like Lahore, Islamabad, and Karachi are seeing population growth, increasing demand for:

• Rent
• Daily transportation
• Food supplies

As demand rises, prices follow.

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City-by-City Cost of Living Breakdown (2025)

(Note: These values are based on average middle-class living conditions.)

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⭐ 1. Karachi — “The Most Affordable Big City, But With Trade-offs”

Monthly Average Expenses (Family of 4)

• Rent (2-bed apartment): PKR 35,000 – 70,000
• Utilities: PKR 12,000 – 18,000
• Groceries: PKR 35,000 – 55,000
• Transport: PKR 8,000 – 15,000

Why Karachi is Relatively Affordable:

• Cheap public transport
• Competitive grocery prices
• Lower housing rates compared to Lahore/Islamabad

Case Study: A Middle-Class Family in Gulistan-e-Jauhar

A family of four reported spending PKR 120,000 per month, managing costs by:

• Using public buses
• Buying bulk groceries
• Avoiding high-end malls

However, safety concerns and inconsistent utilities increase non-financial costs.

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⭐ 2. Lahore — “Comfortable but Expensive for Rent & Transport”

Monthly Average Expenses (Family of 4)

• Rent (2-bed apartment): PKR 45,000 – 90,000
• Utilities: PKR 13,000 – 20,000
• Groceries: PKR 40,000 – 60,000
• Transport: PKR 10,000 – 18,000

Why Lahore Is Getting Costlier:

• Rising housing demand
• Heavy dependency on ride-hailing apps
• Higher restaurant & lifestyle costs

Case Study: Working Couple in Bahria Town Lahore

A young couple with one child reported monthly expenses close to PKR 200,000, mostly due to:

• High school fees
• Fuel and commuting
• Utility bills during summer

Lahore offers comfort, but at a premium price.

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⭐ 3. Islamabad/Rawalpindi — “The Most Expensive City to Live In”

Monthly Average Expenses (Family of 4)

• Rent (2-bed apartment): PKR 55,000 – 130,000
• Utilities: PKR 15,000 – 25,000
• Groceries: PKR 45,000 – 65,000
• Transport: PKR 12,000 – 18,000

Why Islamabad Is the Priciest City:

• High property values
• Expensive services
• Limited affordable housing

Case Study: A Family in G-11 Sector

Their monthly spending reached PKR 240,000, mainly because:

• Rent was PKR 120,000
• Gas shortages forced them to use electric appliances
• School & transport costs were higher than average

Islamabad provides safety and cleanliness but comes at the highest cost.

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⭐ 4. Faisalabad — “Affordable but Limited Lifestyle Options”

Monthly Average Expenses (Family of 4)

• Rent: PKR 25,000 – 50,000
• Utilities: PKR 10,000 – 15,000
• Groceries: PKR 30,000 – 50,000

Case Study:

A textile worker’s family lives comfortably under PKR 90,000, due to low rent and local food accessibility.

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⭐ 5. Peshawar — “Rapidly Growing Costs Due to Inflation”

Monthly Average Expenses (Family of 4)

• Rent: PKR 28,000 – 60,000
• Groceries: PKR 35,000 – 55,000

Peshawar’s costs are increasing rapidly due to food inflation and increased transport prices.

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Main Factors Impacting Cost of Living in 2025

1. Fuel Prices

Directly affect transportation, electricity, and product pricing.

2. Import Dependency

Pakistan imports fuel, machinery, electronics, and even some food items—making prices unstable.

3. Lifestyle Choices

Big cities attract spending on:

• Cafés
• Shopping malls
• Private schools
• Ride-hailing apps

These push overall monthly budgets higher.

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Conclusion

The cost of living in Pakistan in 2025 varies hugely depending on the city, lifestyle, and income level. Karachi offers affordability but lacks certain comforts. Lahore sits in the middle, providing lifestyle and convenience at a higher cost. Islamabad remains Pakistan’s most expensive urban center.

Understanding these variations helps families plan better, especially as economic changes continue.

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✅ A comparison table for r social media