KARACHI: Pakistan’s broad money (M2), a key measure of liquidity in the economy, stood at Rs39.39 trillion as of August 15, 2025, showing a slight week-on-week decline of 0.2%, according to the State Bank of Pakistan.
M2 includes currency in circulation, demand deposits, and time deposits with banks, offering insights into money availability and its potential effects on inflation and economic activity across the country.
Of the total M2, currency in circulation reached Rs10.8 trillion, representing 27.4% of the money supply. This figure rose modestly, reflecting a gradual increase in cash usage among the public.
Meanwhile, total bank deposits remained stable at Rs28.6 trillion, accounting for the majority share of 72% of the total money supply. Deposits with the State Bank also rose slightly by Rs50 billion.
Since the start of the fiscal year (FY26TD), broad money has contracted by 3.3%, mainly due to tight liquidity, cautious bank lending, and ongoing fiscal consolidation efforts by the government.
On a calendar year-to-date basis, the Pakistani rupee has depreciated by 1.17%. However, in the current fiscal year, the currency has appreciated by 0.68%, reflecting slight stability in foreign exchange markets.
