Monthly rent, unfurnished 2-br luxury apartment: $800
Lunch for one at a nice restaurant: $19.33
One liter of gas, unleaded 95 octane: $0.94
Beer, local brand: N/A
Cup of coffee, including service: $2.93

Islamabad is the second-cheapest Pakistani city on Mercer's ranking. (See which city is No. 1.) As the country's capital and fastest-growing urban area, Islamabad is home to many state-owned companies, the Islamabad Stock Exchange, and a growing IT sector. Security is an ongoing concern in the city, which experiences frequent demonstrations, according to the U.S. Embassy in Islamabad.