Pakistan’s overall money supply saw a slight dip in April 2026, easing after a sharp rise in March, as seasonal cash demand faded and banking deposits continued to expand.
Provisional figures released by the State Bank of Pakistan showed that broad money supply, or M3, stood at Rs47.66 trillion in April, down marginally from Rs47.69 trillion in March. Despite the monthly decline, the figure remained much higher than Rs42.21 trillion recorded in April last year.
This translates into a small monthly fall of 0.07 percent, while annual growth remained strong at 12.91 percent, pointing to sustained liquidity in the economy.
Cash demand cools
A closer look at the data suggests that the decline was mainly driven by reduced cash in circulation after the Ramzan and Eid period.
Currency in circulation dropped to Rs11.61 trillion in April from Rs11.91 trillion in March, marking a 2.53 percent monthly fall. The decline reflects a return to normal cash usage after higher withdrawals during the festive season.
However, on a yearly basis, cash held outside banks rose sharply by 16.37 percent, showing that cash transactions still play a major role in Pakistan’s economy.
At the same time, deposits available for immediate use, known as transferable deposits, rose to Rs26.54 trillion. These deposits increased by 0.58 percent compared to March and by 14.60 percent from a year earlier, indicating that liquidity within the banking system remained healthy.
Together, currency in circulation and these deposits pushed the narrow money supply, or M1, to Rs38.15 trillion in April.
Other deposits, which include savings held in local and foreign currencies, climbed to Rs5.89 trillion. This segment grew by 1.57 percent over the month and 2.22 percent over the year.
Coins in circulation also saw a slight increase, reaching Rs9.35 billion.
