M2 falls by Rs324bn in a week

September 23, 2026 (MLN): Broad money (M2), the most widely used measure of money supply in Pakistan, dropped by Rs324.24 billion WoW to Rs44.02 trillion as of September 11, 2026, data released by State Bank of Pakistan (SBP) showed.

When compared to June 2026, M2 has decreased by Rs2.44tr, 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 September 11, 2026 has increased by Rs28.24bn WoW to Rs11.81tr.

While in the current fiscal year, the currency in circulation has decreased by Rs136.31bn as compared to Rs11.94tr recorded at the end of June 2026.

Currency in circulation as a percentage of M2 stood at 26.82% compared to 26.56% a week before and 25.7% on June 2024.

Total deposits held with banks were recorded at Rs32.16tr, depicting a decrease of Rs350.72bn WoW and a decrease of Rs2.3tr 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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