M2 rises by Rs404bn in a week

March 31, 2026 (MLN): Broad money (M2), the most widely used measure of money supply in Pakistan, rose by Rs404.4 billion WoW to Rs42.72 trillion as of March 20, 2026, data released by State Bank of Pakistan (SBP) showed.

When compared to June 2025, M2 has risen by Rs2.21tr, 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 March 20, 2026 has increased by Rs363.44bn WoW to Rs12.1tr.

While in the current fiscal year, the currency in circulation has risen by Rs1.47tr as compared to Rs10.63tr recorded at the end of June 2025.

Currency in circulation as a percentage of M2 stood at 28.33% compared to 27.74% a week before and 26.25% on June 2024.

Total deposits held with banks were recorded at Rs30.57tr, depicting an increase of Rs43.53bn WoW and an increase of Rs752.37bn 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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