Skyline of Islamabad
Cost of Living: 105 1,200,000

Islamabad, Pakistan

Pakistan's planned capital city nestled at the foot of the Margalla Hills, known for its greenery, embassies, and high quality of life.

Updated August 11, 2026
Cost of Living 105

Above Average vs Pakistan Avg (100)

Housing Index 120

Above Average

Median Income ₨ 720,000

Household income

Unemployment 4.5%

Job market health

Islamabad vs Pakistan Average

Cost of Living
Islamabad: 105
Pakistan Avg: 100
Housing Index
Islamabad: 120
Pakistan Avg: 100

Taxes

  • State Income Tax: None
  • Sales Tax: 13.0%

Economy & Jobs

  • Median Income: ₨ 720,000
  • Unemployment: 4.5%
  • Population: 1,200,000

Climate

  • Sunny Days: 260/year
  • Summer High: 95°F
  • Winter Low: 38°F
  • Farming Zone: USDA Zone 6a

Housing

  • Median Home: ₨15,000,000
  • 1BR Rent: ₨35000/mo

Cost of Living

Islamabad's cost of living index is 105 (Pakistan average = 100).

CategoryIslamabadNational AverageDifference
Overall105100+5.0%
Housing120100+20.0%

Data source: Council for Community and Economic Research (C2ER), 2026

Housing Market

MetricValue
Median Home Price₨15,000,000
Median Rent (1BR)₨35000/mo
Median Rent (2BR)₨43,750/mo
Price per Sq Ft₨10,000

Data source: Zillow Research, 2026

True Cost of Home Ownership

True Cost of Home Ownership

See what you'll really pay over 30 years

%
$90,000 down
%
%

Utilities

Estimated monthly utility costs for a typical household in Islamabad:

UtilityEstimated Monthly CostNotes
Electricity₨3000
Heating & Cooling₨32Estimated based on local climate.
Cooling (AC)₨28Estimated based on local climate and electricity rates
Water₨1000Includes sewer
Internet (100+ Mbps)₨2000Broadband average
Garbage / TrashIncluded in taxesMunicipal service (covered by property taxes)
Total Utilities₨6060Monthly estimate (including heating & cooling)

Data sources: U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow

Remote Work Score

Islamabad scores —/100 for remote work readiness:

Cost of Living
105
Rent
₨35000
Sunny Days
260
Tax
None
Unemployment
4.5%
Climate
95°F / 38°F
Safety
4.2 homicides/100k
Population
1,200,000
Internet Speed
20 Mbps

Climate

Islamabad has a varied climate with distinct seasons.

MonthAvg HighAvg LowRainfall
January58°F38°F2.5"
April80°F53°F2.8"
July95°F70°F1.5"
October75°F56°F2.2"
USDA Zone 6a

Cool to mild — apples, pears, berries, many vegetables

Natural Hazards

Islamabad faces the following natural hazards:

Heat Wave Extreme Risk

Extreme summer heat in plains.

Earthquake High Risk

Active seismic zone with significant earthquake risk.

Cyclone High Risk

Significant cyclone risk.

Flood High Risk

Monsoon floods and Indus River system cause significant flooding.

Drought High Risk

Frequent drought conditions.

Landslide High Risk

Northern mountainous region with landslides.

Sandstorm High Risk

Frequent sandstorms.

Avalanche High Risk

Himalayan and Karakoram region with avalanches.

Blizzard Moderate Risk

Northern mountainous regions experience extreme cold.

Based on historical records and geographic risk assessment.

Taxes

  • State Income Tax: 0% (None)
  • Sales Tax: 13%
  • Property Tax: ~0.1% of assessed value

Economy & Jobs

Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 4.5%.

Crime & Safety

Crime rates in Islamabad per 100,000 residents:

100.0
Violent Crime
200.0
Property Crime
4.2
Homicide

City-level crime data is not available for this location. The figure shown is the national average, which may differ significantly from actual conditions in this city.

Data source: UN Office on Drugs and Crime

Schools & Education

Total Schools

Academic Schedule

School Hours 8:00 AM – 1:30 PM
Academic Year April to March
Term System Semester — Summer (Apr-Sep), Winter (Oct-Mar)
Summer Break June to August (8 weeks)
Winter Break December to January (3 weeks)
Spring Break Eid holidays (2 weeks)

Summer break is the longest. School year varies by province.

Universities & Higher Education

3
Universities
#679
Top University Rank
Top-Ranked University COMSATS University Islamabad

Data source: Center for World University Rankings (CWUR) & World Universities Database

Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.

Frequently Asked Questions

What is the cost of living in Islamabad, Pakistan?

The cost of living index in Islamabad is 105, which is Higher the Pakistan national average of 100.

How much does it cost to buy a home in Islamabad?

The median home price in Islamabad is ₨15,000,000. The housing index is 120.

What is the average rent for a 1-bedroom apartment?

The average rent for a 1-bedroom apartment in Islamabad is approximately ₨35000/mo.

Does Islamabad, IS have income tax?

Islamabad is in IS, which has no income tax.

What is the climate like in Islamabad?

Islamabad enjoys approximately 260 sunny days per year. Summer highs reach around 95°F, while winter lows can drop to around 38°F.

Data Sources

  • Cost of Living: Council for Community and Economic Research (C2ER), 2026
  • Housing Data: Zillow Research, 2026
  • Income & Employment: US Census Bureau American Community Survey, 2024
  • Utilities U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow

Data last updated: August 12, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.