Money supply nears Rs48tr in April

May 22, 2026 (MLN): Pakistan’s broad money supply (M3) slipped slightly on a monthly basis in April 2026, reflecting a marginal contraction in liquidity after the sharp expansion seen in March, while annual growth remained robust amid elevated cash demand and expanding deposits in the banking system.

According to provisional data released by the State Bank of Pakistan, the total money supply circulating within the economy stood at Rs47.66 trillion in April 2026, compared to Rs47.69tr in March 2026 and Rs42.21tr in April 2025.

This translates into a marginal decline of 0.07% month-on-month (MoM), while showing a strong increase of 12.91% year-on-year (YoY).

A breakdown of the monetary aggregates shows that currency in circulation in the form of notes amounted to Rs11.61tr during April 2026, while transferable deposits, deposits exchangeable on demand without restriction, stood at Rs26.54tr. Together, these components pushed M1 to Rs38.15tr.

On a monthly basis, notes in circulation declined 2.53% from Rs11.91tr recorded in March, indicating a post-Ramadan and Eid-related normalization in cash withdrawals after heightened seasonal demand in the previous month.

However, on a yearly basis, currency held outside banks surged 16.37%, reflecting continued reliance on cash transactions in Pakistan’s large informal economy.

Meanwhile, transferable deposits increased by 0.58% MoM and 14.60% YoY, suggesting that despite strong currency demand, liquidity within the banking channel remained healthy.

Other deposits, which include claims other than transferable deposits in local and foreign currency, rose to Rs5.89tr in April 2026, registering an increase of 1.57% MoM and 2.22% YoY.

In addition, coins in circulation edged up slightly to Rs9.35 billion from Rs9.34bn in March and Rs9.25bn in April last year.

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