Money supply approaches Rs49tr in May

June 23, 2026 (MLN): Pakistan's broad money supply (M3) rebounded in May 2026, reversing the marginal contraction seen in April, as a surge in transferable deposits and expanding National Savings balances drove liquidity higher on both a monthly and annual basis.

According to provisional data released by the State Bank of Pakistan, the total money supply circulating within the economy stood at Rs48.6 trillion in May 2026, compared to Rs47.66tr in April 2026 and Rs42.87tr in May 2025.

This translates into an increase of 1.98% month-on-month (MoM), while showing a strong rise of 13.34% year-on-year (YoY).

A breakdown of the monetary aggregates shows that currency in circulation in the form of notes and transferable deposits together pushed M1 to Rs39.28tr in May 2026, up from Rs38.15tr in April.

On a monthly basis, M1 rose 2.96% MoM, recovering from the post-Eid normalization seen in April when cash withdrawals had declined seasonally.

Other deposits, which include claims other than transferable deposits in local and foreign currency, declined to Rs5.69tr in May 2026 from Rs5.89tr in April, registering a decrease of 3.44% MoM, though remaining broadly stable on an annual basis.

National Savings Schemes outstanding balances, held with the Central Directorate of National Savings, rose to Rs3.61tr in May from Rs3.59tr in April, edging up 0.50% MoM and reflecting continued retail investor appetite for government-backed savings instruments.

Deposits held with post offices stood at Rs26.57bn in May, compared to Rs27.52bn in April, slipping 3.45% MoM.

In addition, coins in circulation rose to Rs9.38 billion in May from Rs9.35bn in April and Rs9.25bn in May last year.

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