SBP reports 14.51 per cent YoY increase in total money supply

KARACHI: The State Bank of Pakistan (SBP) has reported that the total money supply (M3) in the economy reached Rs37.95 trillion by the end of May 2024, according to provisional accounts on Monetary Aggregates.

This figure marks an increase from Rs37.24 trillion in April 2024 and Rs33.14 trillion in May 2023.

The month-on-month (MoM) growth in the money supply stands at 1.9 per cent, while the year-on-year (YoY) increase is a significant 14.51 per cent.

A detailed breakdown of the money supply reveals that Rs8.73 trillion were circulated as notes, and Rs20.4 trillion were held in transferable deposits. These deposits include all funds that can be exchanged on demand at par without penalty or restriction.

The high level of currency in circulation, largely attributed to Pakistan’s substantial informal economy, remained stable compared to April 2024 but saw a 1.87 per cent rise over the past year.

In addition to notes and transferable deposits, other deposits amounted to Rs5.7 trillion in May 2024, reflecting a 1.5 per cent MoM increase and a 17.94 per cent YoY rise.

These other deposits include all claims aside from transferable deposits, whether in national or foreign currency, that are documented by evidence of deposits.

Coins in circulation were recorded at Rs9.43 billion in May 2024, unchanged from the previous month but up from Rs9.11 billion in May 2023.

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