ISLAMABAD: Islamabad and Karachi were identified as least costly cities for expatriates, whereas Hong Kong, Singapore, and Zurich were designated the most expensive locations for international employees this year, according to Mercer’s latest Cost of Living City Ranking for 2023.
In its 2023 ranking, Mercer evaluated 227 cities spanning five continents. The management consulting firm assessed the costs of more than 200 items in each city, encompassing housing, transportation, food, clothing, household goods, and entertainment, alongside considerations of currency fluctuations relative to the US dollar.
Among the least costly cities listed, Havana saw a drop of 83 positions, attributed in part to substantial currency devaluations in the latter half of the previous year.
The two cities in Pakistan, Karachi at 226 (down three places from last year) and Islamabad at 227, also featured among the least expensive.
Dushanbe in Tajikistan and Bishkek in Kyrgyzstan were ranked above the Pakistani cities, holding positions at 223 and 224, respectively.
The economic crisis in Pakistan, along with the significant depreciation of the rupee against the US dollar, has contributed to these low rankings.
However, people in Pakistan are facing high prices, which reached a peak of 38% inflation in May last year, but it has gotten better since then. The slow demand and weak economic growth show that the problems are not finished yet.
At the opposite extreme, Geneva, Basel, and New York City occupied the fourth, fifth, and sixth positions, respectively, while Copenhagen and Nassau (Bahamas) completed the top 10 list of priciest cities.
Dubai climbed 13 positions to reach 18th place, a shift attributed to its swift post-COVID recovery and the influx of high-net-worth individuals investing in the city, resulting in soaring real estate prices.
