Pakistan
Data updated Jul 16, 2026
Overall Score
49.7
Fair
Avg. Rent (1BR)
$136
-92% vs US Avg
Safety Index
56.3
COL Index
17.8
Level 3 — Reconsider Travel
Please check the latest official travel advisories for Pakistan before planning your trip.
Pakistan is one of the cheapest places on earth to live, and that is essentially the entire case for it. The person seriously considering this is not a typical retiree looking for a comfortable landing spot. You are looking at someone with strong personal or family ties to the country, a researcher or development worker already embedded in local networks, or a very specific type of budget-conscious remote worker who has spent time in-country and knows what they are signing up for. The State Department advisory sits at Level 2, but that designation covers a country where certain border regions and parts of Balochistan carry effectively Level 4 conditions. Where you live within Pakistan matters enormously. Lahore and Karachi are functionally different security environments from Quetta or the tribal areas, and even within those cities, neighborhood selection is not casual.
The numbers are genuinely extreme by any comparison. A single person can cover monthly expenses excluding rent for around $355, and a one-bedroom apartment in a city center runs roughly $136 per month. An all-in monthly budget for a foreigner living reasonably well in Lahore or Islamabad, not roughing it, comes in around $700 to $900. That includes a decent apartment, food, transport, and some margin. The caveat is that foreigners in Pakistan tend to gravitate toward residential areas like DHA or F-series sectors in Islamabad, where rents for a proper expat-suitable apartment can run $400 to $600 per month, making the Numbeo city-center figure fairly optimistic for someone who wants reliable power backup, a security guard, and a lease that does not require a local guarantor.
The practical friction is significant and not fully captured by cost indices. Power outages lasting 4 to 10 hours per day outside of major urban centers are common, meaning a UPS system or generator is a real budget line item. Internet ranks 142nd globally for fixed broadband speeds as of mid-2026, which matters directly if your income depends on video calls or large file transfers. The PKR has depreciated sharply over recent years, losing more than 50% of its value against the dollar between 2022 and 2024, which benefits dollar earners but signals underlying economic instability. Air quality in Lahore is among the worst of any major city in the world, with AQI regularly exceeding 300 in winter months. Healthcare at the Aga Khan Hospital or Shaukat Khanum level is reasonably competent for common conditions, but complex or specialized care will require medical evacuation planning. English works in educated and professional settings but breaks down quickly outside of those contexts.
For a US citizen living in Pakistan, the standard rules apply. You file and pay US taxes on worldwide income regardless of where you live. The Foreign Earned Income Exclusion lets you exclude up to $126,500 of earned income for 2024 if you meet either the bona fide residence test or the physical presence test, 330 days outside the US in a 12-month period. Pakistan does have a tax treaty with the United States, signed in 1959, but it is an older and limited agreement that does not provide the broad individual income protections found in more modern treaties. Pakistan taxes residents on Pakistan-source income and potentially on foreign remittances brought into the country, so if you are receiving dollar income transferred into a Pakistani bank account, you should get local tax advice before assuming that income is invisible to Pakistani authorities. The combination of low costs and dollar income makes the math attractive on paper, but the treaty offers less protection than most Americans assume.
Recommended Destinations in Pakistan
Best for Retirees
Best for Geoarbitrage
Best for Remote Workers
- Capital
- Islamabad
- Official Language
- English, Urdu
- Time Zone
- UTC+05:00
- Region
- Asia
- Population
- 220,892,331
- Healthcare Index
- 59.3
- Internet Speed
- 15 Mbps
- Climate Zones
- arid, subtropical
View on Interactive Map
Explore data visually
🏙️ Top Cities in Pakistan
Explore cost of living, walkability scores, and expat ratings for individual cities in Pakistan.
CoL Index: 23
Est. Total: ~$460/mo
CoL Index: 25
Est. Total: ~$500/mo
CoL Index: 23
Est. Total: ~$415/mo
CoL Index: 23
Est. Total: ~$430/mo
CoL Index: 23
Est. Total: ~$440/mo
CoL Index: 24
Est. Total: ~$480/mo
CoL Index: 21
Est. Total: ~$480/mo
CoL Index: 27
Est. Total: ~$570/mo
CoL Index: 24
Est. Total: ~$372/mo
CoL Index: 22
Est. Total: ~$350/mo
CoL Index: 26
Est. Total: ~$540/mo
CoL Index: 24
Est. Total: ~$500/mo
CoL Index: 23
Est. Total: ~$440/mo
CoL Index: 22
Est. Total: ~$420/mo
CoL Index: 23
Est. Total: ~$460/mo
CoL Index: 26
Est. Total: ~$560/mo
CoL Index: 22
Est. Total: ~$332/mo
CoL Index: 18
Est. Total: ~$600/mo
CoL Index: 22
Est. Total: ~$410/mo
CoL Index: 18
Est. Total: ~$340/mo
How far does $1,500 go in Pakistan?
With a monthly budget of $1,500, you can live comfortably in Pakistan. After accounting for an average rent of $$136, you have approximately $1,364remaining for daily expenses.
Calculate your FIRE timeline with these costs →💰 Cost of Living in Pakistan
Relative to New York City (NYC = 100). A lower number means it's cheaper.
Relative to New York City (NYC = 100). A lower number means rent is cheaper.
Relative to New York City (NYC = 100). A lower number means groceries are cheaper.
Relative to New York City (NYC = 100). A lower number means eating out is cheaper.
Cost Comparison Notes:
Summary of cost of living in Pakistan: The estimated monthly costs for a family of four are $1,191.1 (332,423.8Rs.), excluding rent. The estimated monthly costs for a single person are $354.5 (98,933.7Rs.), excluding rent.
🛒 Grocery & Family Costs
Family Costs
Can I afford to live in Pakistan?
Comfortable (1.0×): balanced baseline lifestyle. Adjusts day-to-day costs only — rent is unaffected.
Pakistan
You could save
2,510/mo
Monthly Costs
Attractiveness Scores
Based on national averages. City-level costs may vary. Browse cities in Pakistan →
⚕️ Healthcare System
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Flexible, subscription-based health cover for remote workers in Pakistan.
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An estimation of the overall quality of the health care system. Higher is better.
Quality & Affordability:
Pakistan's healthcare system faces challenges including insufficient funding, inadequate workforce and infrastructure, and inequitable resource distribution. Total health expenditure is low, with significant out-of-pocket expenses for individuals. Comprehensive policy reforms are needed to improve funding and resource allocation.
Insurance Insights:
The high out-of-pocket expenses underscore the necessity for enhanced health insurance coverage and public funding.
🛂 Visa & Residency Pathways
🛂 Visa Services
Ready to apply for a Pakistan visa?
Get help with your application — tourist, long-stay, and residency visas processed online.
General Overview
Available Visa Types:
Process & Requirements:
Pakistan's residency system is 'complex' and primarily geared towards work, business, or family connections. The main route for expats is to obtain a work visa sponsored by a company registered in Pakistan. The process involves multiple government bodies, including the Board of Investment and the Ministry of Interior, and is known for being bureaucratic. For investors, establishing a business with significant capital is another route. For people of Pakistani origin, the Pakistan Origin Card (POC) provides visa-free entry and indefinite stay, but this is a separate category.
There are no formal programs for retirement or passive income earners. The lack of independent residency options makes long-term stays difficult for those not tied to employment or major investment. The process is managed by the Directorate General of Immigration & Passports (URL: https://dgip.gov.pk/).
Residency & Citizenship Notes:
There is no pathway to permanent residency. The pathway to citizenship is 'difficult'. The law allows for naturalization after five years of residence and meeting a language requirement (Urdu or a regional language). However, the process is highly discretionary and rarely granted to foreigners without Pakistani heritage. Pakistan's stance on dual citizenship is also restrictive; it is only allowed with a small list of specified countries. For most Western nationals, renunciation of their previous citizenship would be required. This makes citizenship an unattainable goal for the vast majority of expats.
🛂 Visa Matcher
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Detailed Visa Options
🧳 Tourist & Short-Stay Information
Extension Notes
A visa extension can be applied for online via the Pakistan Online Visa System portal. The application must be submitted while the current visa is still valid.
Official Source: View Source
General Visa Notes
US citizens must obtain a visa to enter Pakistan. The recommended method is to apply for an e-Visa online through the official NADRA portal. A passport with at least six months of validity is required.
Official Source: View Source
🌴 Retirement / Passive Income Visa
This country does not have a dedicated retirement visa, but the following notes provide guidance on pathways for retirees.
Income Notes
Pakistan does not offer a retirement visa category. Long-term visas are typically for work, business, or for foreign nationals of Pakistani origin.
Official Source: https://visa.nadra.gov.pk/
Health Insurance Notes
Pakistan does not offer a retirement visa category. For other long-term visas, while not always mandatory, having private health insurance is highly recommended.
Official Source: https://visa.nadra.gov.pk/
💻 Digital Nomad Visa
Income Notes
Pakistan does not offer a digital nomad visa. The visa system includes categories for tourism and business, but any form of employment requires a work visa sponsored by a Pakistani company.
Official Source: View Source
🛡️ Safety & Stability
An estimation of overall safety level. Higher is better.
An estimation of the overall level of crime. Lower is better.
World Bank political stability estimate, rescaled to 0-100. Higher is better.
Safety Notes:
Crime Rate: High. Pakistan experiences high levels of crime, including terrorism and armed conflict.
Types of Crime: Armed robbery, assault, kidnapping, and terrorism-related incidents.
Kidnapping Risk: High; incidents are common, particularly in conflict zones.
🏦 Taxation & Finance
🏦 Tax Snapshot
FEIE Interaction
FTC Utility: medium
Pakistan's top marginal rate of 35% exceeds the US top rate, making the Foreign Tax Credit useful for higher earners. The FY2025-26 slabs (current through 30 June 2026) provide significant relief at lower-to-middle income levels (e.g. 1% and 11% bands), reducing creditable Pakistani tax for many earners and making FEIE relatively more attractive than under the prior, steeper slab structure. No tax treaty exists between the US and Pakistan, limiting treaty-based planning. For earners above the FEIE exclusion threshold and in the higher brackets, FTC can still offset residual US liability on income taxed by Pakistan.
Presence Day Count Notes
The standard IRS 330-day physical presence test applies. Pakistan does not have special rules that affect the US FEIE calculation. The bona fide residence test is also available; establishing bona fide residence in Pakistan requires intent to remain indefinitely, which many expats can demonstrate given the nature of long-term assignments.
FBAR Trigger Notes
FBAR filing is required if aggregate value of foreign financial accounts exceeds USD 10,000 at any point during the calendar year. Pakistani bank accounts, brokerage accounts, and accounts at local financial institutions all count. Pakistan has a large informal financial sector; US expats should ensure all formal accounts are captured. FATCA reporting by Pakistani banks is limited but some major international banks operating in Pakistan do report.
401k/IRA Treatment
Pension Income
Under Pakistani tax law, pension income received by a resident individual from a former employer is exempt from income tax. This exemption applies to locally sourced pensions. Foreign pension income may be taxable as foreign-source income under general rules, but enforcement is limited. Government pensions are fully exempt. Note: the FY2025-26 (Finance Act 2025) salary tax slabs in effect through 30 June 2026 are 0% to PKR 600,000; 1% on PKR 600,001-1,200,000; 11% (plus PKR 6,000 fixed) on 1,200,001-2,200,000; 23% (plus PKR 116,000) on 2,200,001-3,200,000; 30% (plus PKR 346,000) on 3,200,001-4,100,000; and 35% (plus PKR 616,000) above PKR 4,100,000 - revised FY2026-27 slabs with further relief and abolition of the high-earner surcharge take effect 1 July 2026.
Not Taxed LocallySocial Security
No US-Pakistan totalization or tax treaty exists. US Social Security benefits received by a Pakistan-resident would technically fall under worldwide income taxation. Pakistan has no specific exemption for foreign social security benefits.
Locally TaxedRoth Distributions
Roth distributions have no special treatment under Pakistani law. In the absence of a US-Pakistan tax treaty, qualified Roth distributions would potentially be assessed as foreign income by Pakistani tax authorities, though the practical enforcement for US expats in Pakistan is limited. Residents are legally liable.
Locally TaxedUS 401k/IRA Distributions
Pakistan does not have a tax treaty with the United States. US 401k and IRA distributions received by a Pakistan-resident US expat would be treated as foreign-source pension/income. Pakistan taxes residents on worldwide income, so these distributions are subject to progressive rates under the FY2025-26 slabs (0%/1%/11%/23%/30%/35%, current through 30 June 2026; revised slabs apply from 1 July 2026). No treaty protection exists to reduce or eliminate this liability.
Locally TaxedCapital Gains Tax
Capital gains tax in Pakistan varies by asset type and holding period. Securities held less than 1 year taxed at 15%; held 1-2 years at 12.5%; held over 2 years at 0% (for listed securities). Immovable property gains taxed on a sliding scale based on holding period: 15% if held under 1 year, reducing to 0% if held over 4 years for individuals. Corporate gains on disposal of immovable property taxed at 15%.
Pakistan taxes capital gains on securities and immovable property separately from ordinary income. Rates depend on asset type and holding period, with longer holding periods attracting lower or zero rates. Listed securities held over 2 years by individuals are exempt.
Dividend Tax Rate
Dividends paid by Pakistani companies to resident individuals are subject to a 15% withholding tax, which is generally the final tax. Dividends from mutual funds may be taxed at different rates (10-25% depending on fund type). Non-resident recipients are subject to 15% withholding, though treaty rates may apply. Dividends from power projects under certain government policy may attract a reduced 7.5% rate.
withholding
Rate: 15.0%
Standard final withholding tax on dividends for resident and non-resident individuals
withholding
Rate: 7.5%
Reduced rate for dividends from power generation companies under government energy policy
withholding
Rate: 25.0%
Rate applied to dividends from stock funds (mutual funds investing primarily in equities)
Tax Treaties Notes:
No US-Pakistan tax treaty. Residents taxed on foreign income remitted.
Retiree Tax Benefits:
No specific benefits. Security concerns deter most retirees.
Cost Savings vs. U.S.:
Very low costs (e.g., Lahore/Karachi apartments from $200/month).
Recommended services for Pakistan
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IBKR →Recommended Partner
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My Expat Taxes →☀️ Climate & Environment
Climate Zones:
Our proprietary index measuring annual average PM2.5 concentration. Lower is better (0-5 is good).
Our proprietary index for drinking water quality and sanitation. Higher is better.
Seasonal Variations:
Pakistan's climate varies from arid in the south to temperate in the north. The country experiences a hot summer from April to June, a monsoon season from July to September, and a cool winter from December to February.
😊 Quality of Life
Cultural Amenities:
Museums & Cultural Institutions
Pakistan is home to several prominent museums, including the Lahore Museum, showcasing the country's rich history and culture.
The National Museum of Pakistan in Karachi houses artifacts from the Indus Valley Civilization and Islamic art.
Performing Arts
Pakistan has a vibrant performing arts scene, with music, dance, and theater playing significant roles in cultural expression.
The National Academy of Performing Arts in Karachi offers training and performances in classical and contemporary arts.
Cultural Festivals
Pakistan celebrates numerous cultural festivals, such as Basant (spring festival), Eid-ul-Fitr, and the Lahore Literary Festival.
The Lok Mela in Islamabad is an annual folk festival showcasing traditional music, dance, and crafts.
Culinary Culture
Pakistani cuisine is rich and diverse, with regional specialties like biryani, kebabs, and various types of bread.
Street food is an integral part of Pakistani culture, with vendors offering a variety of delicious snacks and meals.
🌐 Infrastructure & Connectivity
Our proprietary ranking of public transit accessibility and reliability.
Internet Reliability:
Pakistan has developing internet infrastructure with significant urban-rural disparities.
Speed & Quality: Fixed broadband averages around 35 Mbps in major cities, with expanding fiber networks.
Availability: Good coverage in Karachi, Lahore, and Islamabad, limited rural connectivity.
Cost: Affordable pricing, typically $10-25/month for residential broadband.
Reliability for Remote Work: Adequate for remote work in major cities, though rural areas may face connectivity challenges. Growing tech sector supports digital infrastructure development.
Transportation Network:
Pakistan features an extensive and varied transportation network with recent infrastructure improvements, though challenges remain due to governance issues.
Roads: New national highways and motorways have been built in recent years, improving trade and logistics within the country. Traffic drives on the left side with 25 mph (40 km/h) speed limits in urban areas.
Rail: Pakistan's rail network is undergoing expansion in recent years. Major China-Pakistan Economic Corridor rail upgrade worth $3.1 billion includes new locomotives, infrastructure improvements, and expanded passenger services.
Domestic Travel: Airports and seaports have been built with foreign and domestic funding, though transportation challenges are escalating due to poor planning, inadequate governance, and corrupt practices.
Recommended services for Pakistan
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HideMy.Name →Recommended Partner
Veepn →Frequently Asked Questions about Pakistan
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