Currency in circulation in Pakistan rose to Rs10.967 trillion by November 14, reflecting an 18.9% increase compared to the same period last year, according to data released by the State Bank of Pakistan.
On a weekly basis, Currency in circulation increased 0.2%, while the month-on-month rise stood at 1.5%. Total bank deposits reached Rs28.972 trillion, up 0.1% from the previous month and 9.8% higher than a year earlier. Combined, cash in circulation and deposits pushed broad money (M2) to Rs39.984 trillion, showing annual growth of 12.2% and a monthly increase of 0.5%.
Analysts said the sustained rise in CiC indicates a continued preference for cash despite government measures encouraging digital transactions. They said the expansion in M2 signals a measured improvement in liquidity following monetary easing.
They noted that while deposit growth is improving, the 1.5% monthly rise in CiC keeps the CiC-to-M2 ratio close to 28%, reflecting persistent informality and reliance on cash.
SBP data also showed that government borrowing for budgetary support increased to Rs32.969 trillion, up from Rs28.26 trillion last year. In contrast, private-sector borrowing slipped to Rs9.892 trillion from Rs9.96 trillion, despite signs of economic recovery and easier financial conditions.
