Broad money (M2) Pakistan’s primary gauge of money supply rose by Rs345.76 billion week-on-week, reaching Rs41.63 trillion as of January 2, 2026, according to data released by the State Bank of Pakistan (SBP).

Compared to the close of FY2024-25 in June 2025, when M2 stood at Rs40.79 trillion, the money stock has expanded by Rs838.38 billion during the current fiscal year to date.

Currency in Circulation Declines WoW

The data showed that currency in circulation declined by Rs27.35 billion WoW, settling at Rs10.92 trillion. However, on a fiscal year-to-date basis, cash in circulation remains higher by Rs282.59 billion relative to Rs10.63 trillion recorded at the end of June 2025.

As a share of total money supply, currency in circulation accounted for 26.23%, down from 26.51% a week earlier but slightly above 26.07% in June 2024, indicating a moderate, long-term upward shift in currency preference.

Bank Deposits Increase Sharply

Total deposits held with the banking system reached Rs30.66 trillion, reflecting a Rs367.45 billion WoW increase and a Rs563.73 billion rise since the start of the fiscal year. Deposit data excludes interbank placements, government deposits, and foreign constituency accounts.

About Pakistan’s M2 Measure

In local monetary statistics, M2 is the most commonly referenced definition of broad money.

• From the liability side, it encompasses:
• • currency in circulation
• • deposits of the non-government sector (including resident foreign currency accounts)
• • other deposits with SBP
• From the asset side, M2 equals:
• • net domestic assets + net foreign assets of SBP and scheduled banks

Currency in circulation reflects the balance of banknotes and coins held by individuals and financial institutions outside the banking vaults.