M2 rises by Rs68bn in a week

December 30, 2025 (MLN): Broad money (M2), the most widely used measure of money supply in Pakistan, rose by Rs68.08 billion WoW to Rs40.82 trillion as of December 19, 2025, data released by State Bank of Pakistan (SBP) showed.

When compared to June 2025, M2 has risen by Rs32.97bn, compared to Rs40.79tr recorded by the end of the last fiscal year. 

Breaking down the components of M2, the currency in circulation within the economy till December 19, 2025 has fallen by Rs48.94bn WoW to Rs11.02tr.

While in the current fiscal year, the currency in circulation has risen by Rs383.13bn as compared to Rs10.63tr recorded at the end of June 2025.

Currency in circulation as a percentage of M2 stood at 26.99% compared to 27.16% a week before and 26.07% on June 2024.

Total deposits held with banks were recorded at Rs29.76tr, depicting an increase of Rs116.87bn WoW and a decrease of Rs338.55bn 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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