Friday, March 6, 2015

Karachi the cheapest city in the world ......really?

Karachi the cheapest city in the world ......REALLY ?

A report featured on the BBC this week revealed that the Economist Intelligence Unit (EIU) has recognised Karachi as the cheapest city in the world. It was awarded the same title last year by the EIU during its annual survey on the worldwide cost of living.

The survey took into account the cost of living in 133 cities worldwide using New York City as the base. A basket of more than 160 goods and services was compared, including utilities, clothing and food prices.

Bangalore, Caracas, Mumbai and Chennai are also among the five cheapest cities on the EIU list.

The five most expensive cities in the world remained unchanged this year, with Singapore topping the list. It was followed by Paris, Oslo, Zurich and Sydney.

The State Bank of Pakistan (SBP) Inflation Monitor showed that the year-on-year inflation rate in Karachi was 7.6% in January 2014 and consisted of 10.6% food inflation and 5.4% non-food inflation.

Karachi is my birthplace , my home away from home , I did some research , according to which :the price of meat ( goat )in Karachi 450 / kilo for goat .
One loaf of bread and one dozen of eggs for 350 rupees( combined total)
Rs 1,000 petrol will last you only two days in an air conditioned car.
Average dress for ladies cost between Rs 5,000 ; designer dress for Rs 18,000. One of a kind high end designer ladies dress Rs 35,000.
Pair of Bata sandals for men Rs 2200. Pack of ice cream for Rs 500.
Happy meal at Macdonald Rs 450.

Rent for a three bedroom apartment in an average neighborhood in the city is Rs 15,000 to Rs 20, 000.
Rent of a 3 bedroom apartment in a posh locality Rs 60,000 to Rs 85,000.
School fees for a good English medium school Rs 9,000 to Rs 14, 000 a month.
Average income of an educated , hardworking person with good experience in a 9 to 7 job is around Rs 50,000 to Rs 70,000.
Average income of a private car driver is Rs 15,000.
Average government pension to it's retired employees is Rs 7 , 000 to Rs 15,000.

Joint family system is very common in Pakistan where mostly a person has to take care of himself , his wife , kids and parents. So approximately 7 members in a family. Only 35% of women work outside the house. So technically there is one earning member in family .

Do the Maths and figure out how Karachi can be the cheapest city in the world ??

How can the middle class and lower middle class survive ??

Maybe it is cheap for the corrupt politicians or maybe it is cheap for people with foreign currency who are there to visit but not , not at all cheap for the average middle class family living there is very hard for them to meet ends meet ironic !!

Personally I go to Karachi very frequently but when ever I go I find it more expensive then the last time

Am I right ??