December 01, 2025 (MLN): Broad money (M2), the most widely used measure of money supply in Pakistan, fell by Rs269.2 billion WoW to Rs39.71 trillion as of November 21, 2025, according to data released by the State Bank of Pakistan (SBP).
Compared to June 2025, M2 has declined by Rs1.07 trillion from Rs40.79 trillion recorded at the end of the last fiscal year.
Breaking down the components of M2, the currency in circulation dropped by Rs67.3 billion WoW to Rs10.9 trillion. However, on a fiscal year-to-date basis, currency in circulation has increased by Rs265.03 billion from Rs10.63 trillion at the end of June 2025.
Currency in circulation as a percentage of M2 stood at 27.44%, slightly higher than 27.43% recorded a week earlier and up from 26.07% in June 2024.
Total deposits held with banks were recorded at Rs28.77 trillion, reflecting a WoW decline of Rs201.48 billion and a fiscal year-to-date decrease of Rs1.33 trillion.
Deposits include all holdings of the non-government sector, excluding inter-bank deposits, government deposits, and foreign constituents.
Currency in circulation represents the total value of banknotes and coins in circulation, held by the general public and financial institutions.
In Pakistan, M2 is considered the broadest measure of money supply. From the liability side, it comprises currency in circulation, total deposits of the non-government sector (including residents’ foreign currency deposits), and other deposits with SBP.
From the asset side, M2 represents the sum of net domestic assets and net foreign assets of the banking system both SBP and scheduled banks.
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