World's 5 Most Inexpensive Cities

Karachi: Rank 1

It is the largest city in Pakistan, with a population of more than 12 million, according to a 2007 estimate.

It is the main seaport and financial capital of Pakistan.

It accounts for a lion's share of Pakistan's revenue.

A PricewaterhouseCoopers study released in 2009, surveying the 2008 GDP of the top cities in the world, calculated Karachi's gross domestic product to be $78 billion.

Managua: Rank 2

Managua is the capital of Nicaragua. The city has witnessed the rise and fall of political powers and has suffered devastating earthquakes in 1931 and 1972.

The city has a population of roughly 1.8 million. The Mercer survey says Managua is the second least expensive city in the world to live in for expatriates.
It houses many large national and international businesses.

Multinational companies such as Wal-Mart, Telefonica, Union Fenosa, and Parmalat have offices and operations in Managua.

Managua is also home to all of the major banks of the nation.

Islamabad: Rank 3

Islamabad is the capital and the 10th largest city of Pakistan.

Its estimated population stood at 1.74 million in 2009.

It contributes 1 per cent to the country's gross domestic product.

La Paz: Rank 4

At nearly 12,000 feet above sea level, it is the highest-elevation administrative as well as the departmental capital of Bolivia.

As of the 2001 census, the city had a population of 877,363.
Travellers can find hand-crafted alpaca sweaters, handbags and many other products at Sagarnaga Street markets

Ashgabat: Rank 5

It is the capital and largest city of Turkmenistan.
It has a population of 695,000.
Ashgabat is primarily a government and administrative centre.
The principal industries are cotton textiles and metal working.