Pakistan's broad money (M2), a key indicator of liquidity in the economy, stood at Rs39.39 trillion as of August 15, 2025, down 0.2% week-on-week (WoW), according to data released by the State Bank of Pakistan (SBP) and compiled by Arif Habib Limited (AHL).
M2 is the most widely used measure of money supply and includes currency in circulation, demand deposits, and time deposits with banks. Economists often track it to assess the availability of money in the economy and its potential impact on inflation, interest rates, and economic activity.
Within M2, the currency in circulation amounted to Rs10.8 trillion, making up 27.4% of the total broad money, slightly lower than the previous week. Meanwhile, total deposits with banks remained steady at Rs28.6 trillion, contributing the bulk share of 72% of M2. Deposits with the SBP also increased modestly to Rs50 billion.
In the current fiscal year to date (FY26TD), the broad money has contracted by 3.3%, reflecting a combination of factors including tight liquidity conditions, cautious lending and fiscal consolidation. Bank deposits have fallen by 5% since June, while the currency in circulation has inched up by 1.4% during the same period.
The Pakistani rupee registered a marginal rise against the US dollar in the inter-bank market on Tuesday, extending its winning streak for the 13th consecutive session. At close, the local currency settled at 281.86 per dollar, appreciating by one paisa versus Monday's close at 281.87.
The rupee's steady performance in recent days has been attributed to improved market sentiment, supported by an ongoing crackdown on illegal currency dealers and cross-border smuggling.
On a calendar year-to-date (CYTD) basis, the currency has depreciated by 1.17%, while in the fiscal year to date, it has appreciated by 0.68%, according to Ismail Iqbal Securities.
Gold prices in Pakistan climbed, tracking gains in the international market, where the precious metal rose on safe-haven demand after investor confidence in the US Federal Reserve was shaken by President Donald Trump's dismissal of a Fed governor.
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association, the price of gold increased by Rs900 per tola, settling at Rs360,700. Similarly, the price of 10-gram gold rose by Rs772, reaching Rs309,242.
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