Pakistan’s broad money supply (M2), the most widely tracked measure of liquidity in the economy, increased by Rs777.99 billion during the week ended June 12, 2026, reaching Rs44.23 trillion, according to the latest data released by the State Bank of Pakistan (SBP).

The latest reading reflects a substantial expansion in liquidity across the banking system. Compared to the end of the previous fiscal year, M2 has grown by Rs3.73 trillion, up from Rs40.51 trillion, highlighting continued monetary expansion during FY2025-26.

The increase in money supply was primarily driven by a sharp rise in bank deposits. Total deposits held with banks surged by Rs865.59 billion on a weekly basis to Rs32.07 trillion. On a fiscal year-to-date basis, deposits have increased by Rs2.25 trillion, indicating stronger savings and liquidity within the formal banking sector.

According to SBP data, these deposit figures exclude inter-bank deposits, government deposits, and deposits held by foreign entities.

Meanwhile, currency in circulation declined by Rs86.26 billion during the week to Rs12.12 trillion. Despite the weekly decrease, cash circulating in the economy remains significantly higher than last year, recording an increase of Rs1.49 trillion since the beginning of the fiscal year compared to Rs10.63 trillion at the end of the previous fiscal year.

As a result, the share of currency in circulation as a percentage of total M2 eased to 27.4 percent, compared to 28.09 percent a week earlier. However, it remained above the 26.25 percent level recorded during the corresponding period last year.

Broad money (M2) is considered the most comprehensive measure of money supply in Pakistan and serves as a key indicator of liquidity and economic activity. From the liability side, M2 comprises currency in circulation, deposits of the non-government sector including resident foreign currency deposits, and other deposits held with the SBP.

From the asset side, M2 reflects the sum of net domestic assets and net foreign assets of the banking system, including both the State Bank of Pakistan and scheduled banks.

The continued expansion in M2, supported by rising deposits and improved banking sector liquidity, reflects growing financial activity within the economy and remains an important indicator for monetary policy, inflation management, and overall economic conditions.