The total money supply circulating within Pakistan’s economy reached 47.69 trillion rupees in March 2026, according to the latest provisional data on monetary aggregates released by the State Bank of Pakistan. This figure represents a 2.2 percent increase on a month-on-month basis from the 46.67 trillion rupees recorded in February 2026. On a year-on-year basis, the money supply expanded significantly by 13.57 percent, up from 41.99 trillion rupees in March 2025, reflecting a steady growth in liquidity across the national financial system.
A detailed breakdown of the monetary components reveals that currency in circulation, consisting of physical banknotes, amounted to 11.91 trillion rupees. Transferable deposits, which encompass all accounts that can be exchanged on demand without penalty, formed the largest portion of the supply at 26.39 trillion rupees. The high volume of currency in circulation remains a distinctive feature of Pakistan’s economy, often attributed to the substantial size of the informal sector and a heavy reliance on cash-based transactions compared to international peers.
The data indicates that currency in circulation grew by 5.08 percent month-on-month and surged by 16.29 percent compared to the previous year. Analysts suggest this upward trend is largely driven by increased cash withdrawals as depositors navigate persistent inflationary pressures. The preference for holding physical cash over digital or bank-held assets often intensifies during periods of high inflation, as consumers look to manage immediate liquidity needs and purchasing power.
Other deposits, which include all local and foreign currency holdings not classified as transferable or demand-based, totaled 5.8 trillion rupees in March 2026. This segment saw a minor contraction of 0.05 percent on a monthly basis, though it maintained a 3.01 percent growth rate compared to March 2025. Meanwhile, coins in circulation remained a small fraction of the total supply, recorded at 9.34 billion rupees, showing marginal growth from both the previous month and the previous year.
The expansion of the total money supply is a critical indicator for the central bank as it monitors inflationary trends and liquidity in the banking sector. While the increase in deposits signals some level of financial deepening, the sharp rise in physical currency holdings highlights the ongoing challenges of documenting the economy and reducing the reliance on cash. As the State Bank continues to manage monetary policy, these aggregates will provide essential insights into the purchasing power and spending behaviors of the Pakistani populace in a high-inflation environment.
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