M2 rises by Rs4bn in a week

June 18, 2025 (MLN): Broad money (M2), the most widely used measure of money supply in Pakistan, rose by Rs4.32 billion WoW to Rs38.09 trillion as of June 06, 2025, data released by the State Bank of Pakistan (SBP) showed.

When compared to June 2025, M2 has risen by Rs2.21tr, compared to Rs35.88tr recorded by the end of the last fiscal year.

Breaking down the components of M2, the currency in circulation within the economy till June 06, 2025 has increased by Rs568.34bn WoW to Rs10.83tr.

While in the current fiscal year, the currency in circulation has risen by Rs1.68tr as compared to Rs9.15tr recorded at the end of June 2025.

Currency in circulation as a percentage of M2 stood at 28.45% compared to 26.96% a week before and 25.51% on June 2024.

Total deposits held with banks were recorded at Rs27.21tr, depicting a decrease of Rs562.06bn WoW and an increase of Rs541.97bn 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 the liability side, it is measured as a sum of currency in circulation; total deposits of the non-government sector, including residents’ foreign currency deposits; and other deposits with the 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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