Pakistan’s broad money supply (M2) continued its upward trend during the week ended June 19, 2026, increasing by Rs116.97 billion to reach Rs44.35 trillion, according to the latest data released by the State Bank of Pakistan (SBP).

The latest figures indicate continued expansion in overall liquidity within the banking system, largely supported by growth in bank deposits despite a decline in currency circulating in the economy.

Since the beginning of the current fiscal year, M2 has expanded by approximately Rs3.84 trillion, compared with Rs40.51 trillion recorded at the close of the previous fiscal year, reflecting sustained monetary expansion.

Currency in circulation declined by Rs68.71 billion during the week to Rs12.05 trillion. However, on a fiscal-year basis, currency held by the public has increased by Rs1.42 trillion, compared with Rs10.63 trillion at the end of the previous fiscal year.

As a result, currency in circulation accounted for 27.17% of total broad money, slightly lower than 27.40% a week earlier, indicating a gradual shift toward deposit growth within the banking system.

Meanwhile, deposits held with commercial banks increased by Rs184.63 billion during the week to reach Rs32.25 trillion. Since the start of FY2025-26, bank deposits have expanded by approximately Rs2.44 trillion, highlighting continued growth in the formal financial sector.

The reported deposit figures exclude interbank deposits, government deposits, and foreign constituent accounts, reflecting only deposits held by the non-government sector.

Broad money (M2) is the principal measure of money supply used by the State Bank of Pakistan. It comprises currency in circulation, deposits held by the non-government sector including resident foreign currency deposits and certain other deposits with the central bank.

The continued increase in M2 and bank deposits reflects improving liquidity conditions in the economy and remains an important indicator for assessing monetary trends, banking sector activity, and overall economic conditions.