Pakistan’s money supply rises 21.3% as deposits, cash circulation increase

Pakistan’s broad money supply (M2) expanded by 21.3% year-on-year as of March 27, 2026, reflecting increased liquidity in the economy driven by higher bank deposits and a rise in currency in circulation.

Data shows total bank deposits grew by 18.7% to Rs30.6 trillion, indicating continued inflows into the banking system. At the same time, currency in circulation increased by 28.4% to Rs12.07 trillion, pointing to sustained demand for cash.

The increase in money supply signals expanding economic activity, although it also raises concerns about potential inflationary pressures due to higher liquidity levels.