M2 falls by Rs321bn in a week

November 03, 2026 (MLN): Broad money (M2), the most widely used measure of money supply in Pakistan, dropped by Rs320.75 billion WoW to Rs44.32 trillion as of October 23, 2026, data released by State Bank of Pakistan (SBP) showed.

When compared to June 2026, M2 has decreased by Rs2.14tr, compared to Rs46.46tr recorded by the end of the last fiscal year. 

Breaking down the components of M2, the currency in circulation within the economy till October 23, 2026 has fallen by Rs89.95bn WoW to Rs11.62tr.

While in the current fiscal year, the currency in circulation has decreased by Rs321.48bn as compared to Rs11.94tr recorded at the end of June 2026.

Total deposits held with banks were recorded at Rs32.65tr, depicting a decrease of Rs229.15bn WoW and a decrease of Rs1.82tr 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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