Broad money, the most widely utilized metric for assessing total liquid assets and overall money supply across Pakistan, contracted by 709.72 billion rupees week-on-week to stand at 43.8 trillion rupees as of July 17, 2026, according to official monetary statistics published by the State Bank of Pakistan. The latest weekly contraction reflects a broader monetary retrenchment at the start of the new fiscal period. When evaluated against the closing figures of June 2026, aggregate money supply has recorded a cumulative fiscal-year-to-date decrease of 2.67 trillion rupees from the 46.46 trillion rupees registered at the conclusion of the previous fiscal year, pointing to seasonal post-fiscal-year-end liquidity adjustments across commercial banking channels.
A granular breakdown of individual money supply components reveals that currency in circulation within the domestic economy shrank by 119.1 billion rupees over the weekly reporting window to settle at 12.1 trillion rupees by July 17, 2026. However, on a cumulative fiscal-year-to-date basis, currency held outside the central bank expanded by 154.72 billion rupees compared to the 11.94 trillion rupees recorded at the end of June 2026. As a result of these relative shifts, currency in circulation expressed as a proportion of total broad money edged upward to 27.62 percent, compared to 27.45 percent observed during the preceding week, highlighting persistent cash preference among economic actors despite overall monetary tightening.
Commercial bank deposit dynamics served as the primary driver behind the weekly contraction in aggregate monetary liabilities. Total deposits held across the commercial banking system stood at 31.65 trillion rupees as of July 17, 2026, marking a week-on-week decline of 591.74 billion rupees alongside a cumulative fiscal-year-to-date contraction of 2.82 trillion rupees. These deposit figures specifically reflect non-government sector holdings, encompassing resident foreign currency deposits while explicitly excluding inter-bank deposits, federal and provincial government balances, and deposits maintained by foreign institutional constituents.
Currency in circulation represents the physical balance of banknotes and coins circulating throughout the financial system, held collectively by commercial banking institutions, corporate entities, and the general public. Within the national monetary accounting framework, broad money serves as the primary gauge for measuring overall liquidity conditions across domestic markets. Analyzed from the liability perspective, broad money is measured as the combined sum of currency in circulation, total non-government sector deposits including resident foreign currency accounts, and other specialized deposit liabilities maintained directly with the central bank.
From the asset perspective of monetary accounting, broad money corresponds directly to the net domestic assets combined with the net foreign assets of the consolidated banking system, incorporating both the central bank balance sheet and scheduled commercial banks. The ongoing post-year-end reduction in aggregate broad money aligns with standard seasonal liquidity patterns, as commercial entities settle annual financial obligations, government accounts undergo routine fiscal reconciliations, and commercial lenders adjust their balance sheet positions following the close of the financial year.
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