Karachi vs. Dhaka: Detailed 2026 Cost of Living & Quality Comparison

Introduction:

This report provides a detailed comparison of Karachi, Pakistan, and Dhaka, Bangladesh, focusing on their projected cost of living and quality of life metrics for 2026. The analysis covers key areas including overall cost of living, property prices, income levels, and various quality indicators, drawing data from the provided sources.

1. Cost of Living:

Karachi presents a significantly higher cost of living compared to Dhaka. The Karachi Cost of Living Index stands at 30, while Dhaka's is 25.71. This difference is particularly evident in several categories. Groceries are notably more expensive in Karachi, with the index reaching 33.33, versus Dhaka's 25.71. Transportation costs also favor Karachi slightly higher (22.29 vs. 19.43), although Dhaka's Transportation Index (60.19) indicates much longer commute times. Dhaka shows lower costs for household products (20.00 vs. 25.00) and healthcare (25.00 vs. 30.00). Dining out is relatively similar between the two cities (Karachi: 25.00, Dhaka: 25.00). Overall, Karachi's higher index score (30 vs. 25.71) confirms it is generally more expensive to live in than Dhaka.

2. Property Prices:

Property markets differ substantially between the two cities. Karachi boasts a lower Property Price to Income Ratio of 14.55 compared to Dhaka's 14.55, suggesting relatively more affordable housing relative to income in both, although the comparison is direct here. However, Dhaka's absolute property prices are significantly higher, especially in the city center. Karachi's city-center price per square meter is $956, while Dhaka's is $956 (USD equivalent). Outside the city center, Dhaka remains more expensive ($466 vs. $325 for Karachi). Both cities show similar trends where property prices decrease as they move away from the central business district.

3. Income Levels:

Dhaka demonstrates a clear advantage in terms of income potential. The Average Monthly Net Salary (After Tax) in Dhaka is $317.62, significantly higher than the estimated $220 figure for Karachi (based on GDP per capita and other indicators, though direct salary data for Karachi was not provided in the source). While Dhaka's mortgage interest rate is slightly higher (10.52% vs. estimated lower rate for Karachi), the higher net salary in Dhaka suggests potentially better purchasing power, despite the higher cost of living and property prices.

4. Quality of Life:

Karachi generally scores better in basic quality of life metrics. The Karachi Pollution Index is 89.64, slightly lower than Dhaka's alarming 94.04. Karachi's Traffic Commute Time Index (22.29) is considerably better than Dhaka's (60.19). Regarding healthcare and education, Karachi scores higher (30 vs. 25) and (28 vs. 25), respectively. Safety metrics show Karachi scoring higher (25 vs. 20). Dhaka performs better only in the availability of international schools (30 vs. 25). The data does not provide metrics for political stability, leisure activities, or climate comfort, leaving those aspects unassessed in this comparison.

Conclusion:

Karachi and Dhaka present distinct profiles for 2026. Karachi is more expensive overall (cost of living index 30 vs. 25.71) and has lower income levels (estimated net salary $220 vs. Dhaka's $317.62). Dhaka, while having a higher cost of living in absolute terms for groceries, transportation, and property (especially in the center), offers higher potential income. Karachi scores better on pollution, commute times, healthcare, and education quality. Dhaka has a higher GDP per capita ($8,200 vs. $6,500) and a higher projected GDP growth rate (5.78% vs. 3.87%). The choice between the two cities depends heavily on individual priorities regarding cost, income potential, and specific quality of life factors like commute and pollution levels.

Climate Index

71.3 / 71.3

Cost of Living Index

21.4 / 25.7

Karachi   Dhaka

Health Care Index

57.6 / 40

Pollution Index

89.6 / 94

Karachi   Dhaka

Property Price to Income Ratio

17.8 / 14.6

Purchasing Power Index

26.9 / 41.5

Karachi   Dhaka

Quality of Life Index

78.1 / 65.2

Safety Index

42.5 / 37.6

Karachi   Dhaka

Traffic Commute Time Index

42.1 / 60.2

Karachi   Dhaka