Broad money — currency in circulation plus demand and time deposits held at banks — the total stock of money circulating through Pakistan's economy.
Source: SBP EasyData, weekly, broad money (M2) stock level in trillion Rupees.
M2, or broad money, is the total stock of money available in the economy: physical currency in circulation, plus the deposits households and businesses hold in bank accounts — both demand deposits (checking-style, spendable on demand) and time deposits (fixed-term savings).
M2 grows through two main channels: the State Bank of Pakistan expanding the monetary base, and commercial banks creating new deposits as they extend credit — meaning private-sector lending growth is itself one of the drivers of M2 growth, not a separate story.
SBP reports M2 on a weekly basis, making it one of the more frequently updated indicators in the monetary dataset, alongside the policy rate and T-Bill/PIB auction yields.
Money supply growth is one of the oldest and most closely watched inflation drivers in economics — when M2 grows persistently faster than the real economy, the classic monetarist expectation is that the excess ends up as higher prices rather than higher output.
SBP's Monetary Policy Committee monitors M2 growth alongside inflation and credit data when calibrating the policy rate — sustained excess money growth is one signal that policy may need to tighten.