Money supply slips below Rs50tr mark in July

August 25, 2026 (MLN): Pakistan's broad money supply (M3) contracted in July 2026, reversing the sharp rebound seen in June, as a pullback in transferable deposits and notes in circulation pulled overall liquidity lower on a monthly basis, even as annual growth held in double digits.

According to provisional data released by the State Bank of Pakistan, the total money supply circulating within the economy stood at Rs49.35tr in July 2026, compared to Rs50.52tr in June 2026 (revised) and Rs44.49tr in July 2025.

This translates into a decline of 2.32% month-on-month (MoM), while still posting a strong rise of 10.91% year-on-year (YoY).

A breakdown of the monetary aggregates shows that currency in circulation in the form of notes and transferable deposits together pulled M1 down to Rs39.49tr in July 2026, from Rs40.85tr in June.

On a monthly basis, M1 fell 3.33% MoM, with both notes in circulation and transferable deposits registering declines after June's build-up.

Other deposits, which include claims other than transferable deposits in local and foreign currency, rose to Rs6.13tr in July 2026 from Rs6tr in June, registering an increase of 2.31% MoM and 6.08% YoY.

National Savings Schemes outstanding balances, held with the Central Directorate of National Savings, rose to Rs3.68tr in July from Rs3.63tr in June, edging up 1.47% MoM and reflecting continued retail investor appetite for government-backed savings instruments.

Deposits held with post offices stood at Rs26.34bn in July, compared to Rs26.39bn in June, slipping 0.16% MoM.

In addition, coins in circulation rose to Rs9.41bn in July from Rs9.40bn in June and Rs9.29bn in July last year.

Copyright Mettis Link News