Broad money supply in Pakistan, represented by the aggregate M3 metric, continued its upward trajectory through June 2026 as total liquidity across financial channels recorded both month-on-month growth and sustained annual expansion. Provisional financial figures released by the State Bank of Pakistan reveal that total money supply circulating throughout the national economy stood at PKR 50.52 trillion by the end of June 2026. This figure marks a clear increase from the PKR 48.60 trillion recorded in May 2026 and reflects substantial growth when compared to the PKR 44.87 trillion reported in June 2025.
The latest monetary statistics translate into a month-on-month liquidity expansion of 3.93 percent compared to May 2026 figures. On a year-on-year basis, broad money supply registered a 12.60 percent growth rate, underscoring systemic liquidity accumulation across banking deposits and financial instruments. The continuous growth in broad money supply reflects sustained accumulation of liquid assets within formal commercial channels alongside rising demand for short-term transaction instruments.
A detailed breakdown of monetary aggregates shows that the narrow money supply metric, designated as M1, reached PKR 40.85 trillion in June 2026. This represents a 4.02 percent monthly increase from the PKR 39.28 trillion documented during the preceding month of May. The expansion in M1 was primarily driven by increases in physical currency held by the public and higher balances within transferable demand deposits. The growth trajectory in M1 maintains the upward momentum that began emerging in previous monthly reporting cycles, pointing to ongoing transaction demand across business and retail sectors.
Other financial deposits, which encompass claims beyond standard transferable accounts in both local and foreign currency, registered a notable recovery during the same reporting window. These deposits grew to PKR 6.00 trillion in June 2026 from PKR 5.68 trillion recorded in May, marking a monthly uptick of 5.47 percent. This increase effectively reversed the contraction observed in this specific category during the prior month, indicating renewed institutional and retail willingness to park capital in non-transferable banking instruments.
Retail participation in government-backed financial instruments also remained positive during the period under review. Outstanding balances held within National Savings Schemes, managed by the Central Directorate of National Savings, rose to PKR 3.63 trillion in June 2026, up from PKR 3.61 trillion recorded in May. This 0.65 percent monthly rise indicates sustained interest among individual saver groups for sovereign-backed investment vehicles offering predictable returns amid broader financial market shifts.
Meanwhile, minor financial channels exhibited steady or slightly lower balances. Postal savings deposits held with post office branches across the country experienced a minor contraction, shifting from PKR 26.57 billion in May 2026 to PKR 26.55 billion in June, representing a subtle drop of 0.06 percent month-on-month. Conversely, metallic currency in circulation saw a modest increase during the month. Total coins circulating within the public domain rose to PKR 9.40 billion in June 2026, up from PKR 9.38 billion recorded in May 2026 and PKR 9.26 billion reported during the corresponding period of June 2025.
The consolidated expansion across transferable deposits, non-transferable holdings, and government savings programs points to a steady increase in overall financial system liquidity at the close of the fiscal year. As the central bank continues to track circulating supply and deposit accumulation, these monetary aggregates serve as core indicators for evaluating broader credit conditions, consumer spending capacity, and systemic capital allocation across Pakistan banking environment.
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