M2 falls by Rs200bn in a week

March 04, 2026 (MLN): Broad money (M2), the most widely used measure of money supply in Pakistan, dropped by Rs199.94 billion WoW to Rs41 trillion as of February 20, 2026, data released by State Bank of Pakistan (SBP) showed.

When compared to June 2025, M2 has risen by Rs491.41bn, compared to Rs40.51tr recorded by the end of the last fiscal year.

Breaking down the components of M2, the currency in circulation within the economy till February 20, 2026 has fallen by Rs15.87bn WoW to Rs11.37tr.

While in the current fiscal year, the currency in circulation has risen by Rs731.1bn as compared to Rs10.63tr recorded at the end of June 2025.

Currency in circulation as a percentage of M2 stood at 27.72% compared to 27.63% a week before and 26.25% on June 2024.

Total deposits held with banks were recorded at Rs29.58tr, depicting a decrease of Rs186.08bn WoW and a decrease of Rs231.91bn FYTD.

To note, the deposits held with banks exclude inter-bank deposits, deposits of governments, and foreign constituents.

Currency in circulation represents the balance of banknotes and coins in circulation, held by the general public and financial institutions.

In Pakistan, M2 is the most widely used definition of broad money.

From liability side, it is measured as a sum of currency in circulation; total deposits of non-government sector, including residents’ foreign currency deposits; and other deposits with SBP.

And from asset side, M2 is a sum of net domestic assets and net foreign assets of the banking system (i.e. SBP and scheduled banks).

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