KARACHI: Pakistan’s commercial hub city of Karachi is one of the 10 cheapest cities in the world when it comes to expenditures regarded to foods, transportation, health and other basic necessities, claimed a report issued by the Economist Intelligence Unit (EIU) on the day of Thursday.
The Worldwide Cost of Living 2016 survey, making comparison of the price of a weighted basket of goods across 133 cities in the world, put the industrial hub of Pakistan at the 127 rank this year.
“Commodity costs, which are also falling back, could act as further deflators in few markets,” the report stated.
“While it is obvious that oil markets sustain to be oversupplied, there are reasons to believe that there could be a moderate rebound in prices in the year 2016.”
The EIU, which conducts this survey twice annually, compares more than 400 individual costs across the 160 products and services, involving food, drink, clothing, residential supplies and personal care items, home rents, transport, utility bills, private schools, domestic assistance and recreational prices. Entire cities are compared with a base city of New York, which has an index set at the 100.
Karachi ranked 44 in comparison with the base city.
In accordance to the survey findings, Karachi’s rank made better the 5 notches from the previous survey.
“The fall in the oil price in the year 2015 and early 2016 will put downward pressure on emerging and oil producing countries’ currencies, which will have an important affect on pricing,” the EIU forecast. “On the 1 hand, falling oil costs will drive down inflation for goods and incomes for exporting states.”
The report indicated that Almaty of Kazakhstan, Algiers of Algeria and Chennai of India acquired the similar ranking as the city of Karachi in the latest survey. 3 other cities of India, involving Bangalore, Mumbai and New Delhi were also found as the top 10 cheapest countries in the world.
The ranking observed the 16 US cities surveyed climb up the ranking by an average of eighteen places with the cities of New York and Los Angeles featuring among the 10 most expensive cities for the 1st time since the year 2002.
Singapore retains its title as the world’s most costly or expensive city for a 3rd year in a row, but its lead over the next 2 cities in the ranking has almost evaporated.
Zurich and Hong Kong follow closely in joint 2nd place, with the city of Hong Kong climbing 7 places up the ranking in the previous 12 months.
London, New York and Los Angeles also rise up to the ranking of 6th, 7th and 8th place, respectively, displacing the cities of Sydney, Melbourne and Oslo from the 10 most expensive cities.