Karachi, along with the Indian city Bengaluru have been declared as the cheapest cities to live in.
According to the bi-annual cost of living index, published by The Economist’s Intelligence Unit, Karachi was the most affordable city to live in for the second consecutive time.
Bengaluru replaces Mumbai as the joint least expensive city of the world. Mumbai has now dropped down to third spot, followed by Caracas and Chennai.
The index which surveyed 133 cities worldwide compares the cost of more than 160 services and products including food, clothing and utility bills using New York as a base line.
The report identifies Asia as home to many of the world’s cheapest cities as five out of six cheapest cities are in India and Pakistan.
Most expensive cities of the world
Singapore dethroned Tokyo to claim the crown of the most expensive city to live in the world in 2014.
While weak inflation and the devaluation of Japanese Yen pushed Tokyo and Osaka to 11th and 16th place respectively, Singapore climbed five spots from the last ranking to be declared the most expensive city.
According to the index, Paris and Oslo were the second and third most expensive cities of the world to live in, respectively.
Other cities that made the list include Zurich (4), Sydney (5), Melbourne (6), Geneva (7), Copenhagen (8) and Hong Kong (9).
Seoul was the surprise addition to the list of the world most expensive cities as it jump from 50th spot in 2012 to 9th place to tie with Hong Kong.