The State Bank of Pakistan (SBP) reported that the total money supply in the economy reached 40.09 trillion rupees by November 2024. This represents a modest monthly increase of 0.39% from 39.93 trillion rupees in October and a significant increase year-on-year. By 13.95% compared to 35.18 trillion rupees in November 2023.
Breaking down the money supply, 9.05 trillion rupees were in circulation as currency notes, while convertible deposits – money that can be accessed equally easily without penalties or restrictions – amounted to 22 trillion rupees. The heavy reliance on banknotes, often attributed to Pakistan’s large informal economy, saw a monthly rise of 1.33% and a yearly increase of 7.89%, reflecting rising cash withdrawals amid persistent inflationary pressures.
Other deposits, amounting to 5.86 trillion rupees in November, grew by 0.21% month-on-month and 11.06% year-on-year. These deposits include claims in national or foreign currency that cannot be exchanged on demand but are supported by evidence of deposits.
Coins in circulation remained a minor component of the money supply, standing at 9.12 billion rupees in November, up slightly from 9.09 billion rupees in October but slightly below the 9.24 billion rupees recorded in November 2023.