M2 falls by Rs497bn in a week

July 20, 2026 (MLN): Broad money (M2), the most widely used measure of money supply in Pakistan, dropped by Rs497.06 billion WoW to Rs44.51 trillion as of July 10, 2026, data released by State Bank of Pakistan (SBP) showed.

When compared to June 2026, M2 has risen by Rs4tr, 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 July 10, 2026 has increased by Rs123.72bn WoW to Rs12.22tr.

While in the current fiscal year, the currency in circulation has risen by Rs1.58tr as compared to Rs10.63tr recorded at the end of June 2026.

Currency in circulation as a percentage of M2 stood at 27.45% compared to 26.87% a week before and 26.25% on June 2024.

Total deposits held with banks were recorded at Rs32.24tr, depicting a decrease of Rs624.56bn WoW and an increase of Rs2.43tr 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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