Cost of Living in Pakistan, 1947: A New Nation's Modest Prices
At independence (August 1947), Pakistan's cost of living was extremely low by modern standards—reflecting a predominantly agrarian, pre-industrial economy with a rupee pegged to the British pound (1 GBP = 13.33 PKR).
Representative Monthly Costs (Family of 4, Urban)
| Category | Cost (PKR) | Notes |
|---|
| Rent (small apt, Karachi) | ~10 | Pre-inflation, rent-controlled |
| Food (groceries) | ~50 | Wheat, dal, vegetables, ghee; mostly local |
| Transport (bus Karachi→Lahore) | ~5 | One-way, 3rd class |
| Clothing (shoes) | ~5 | Leather, locally made |
| Clothing (shirt) | ~3 | Cotton, handloom |
| Entertainment (cinema) | ~1 | Single ticket |
| Entertainment (book) | ~2 | Paperback |
Income Context
- Clerk/teacher salary: 60–100 PKR/month
- Skilled artisan: 40–80 PKR/month
- Unskilled labor: 15–30 PKR/month
- Per capita GDP (1950): ~$60/yr ≈ 500 PKR/yr
Caveats
- Data fragmented; no official CPI until 1950s
- Partition disruption caused temporary spikes (refugee influx, supply breaks)
- Rural majority (85%) largely non-monetized—subsistence farming, barter
- Currency: Indian rupee used until 1948; Pakistan overprinted notes, then issued own (1948)
A 100 PKR/month budget supported a modest urban family—equivalent to ~£7.50 or $30 at official rate. Today's equivalent purchasing power would be ~PKR 150,000+ (cumulative inflation ~1,500×).
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