The supply of broad money (M2) in Pakistan, the most commonly tracked measure of money supply, saw an increase of Rs141.06 billion in the week ending March 14, 2025, reaching a total of Rs36.06 trillion, according to data from the State Bank of Pakistan (SBP).
Since June 2024, the M2 money supply has grown by Rs180.04 billion, rising from the Rs35.88 trillion recorded at the end of the last fiscal year.
Breaking down the figures, the amount of currency in circulation within the economy by March 14 had risen by Rs78.37 billion week-on-week, reaching Rs9.84 trillion. Over the current fiscal year, this amount has increased by Rs691.5 billion, up from Rs9.15 trillion as of June 2024.
The share of currency in circulation as a percentage of M2 rose to 27.3 per cent by mid-March 2025, up slightly from 27.19 per cent the previous week and higher than the 25.51 per cent recorded in June 2024.
Meanwhile, total deposits held in banks amounted to Rs26.17 trillion, reflecting a weekly rise of Rs63.6 billion. However, on a fiscal-year-to-date basis, these deposits have decreased by Rs499.89 billion. It’s important to note that this figure excludes inter-bank deposits, government deposits, and foreign-held deposits.
Currency in circulation refers to banknotes and coins that are actively used by the public and financial institutions. In Pakistan, M2 is the preferred measure for assessing the broad money supply, which includes not just currency in circulation but also total deposits held by the non-government sector, including residents’ foreign currency deposits, and other deposits with the SBP.
From a liability perspective, M2 consists of currency in circulation and total deposits from non-government entities. On the asset side, M2 represents the combined total of net domestic assets and net foreign assets within the banking system, which includes both the SBP and scheduled banks.
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