New data from the SBP reveals a historic change in how Pakistanis manage their money. The bank deposits surged by over Rs 910 billion in a single week and the use of physical cash dropped sharply. This shows that more citizens are now trusting banking apps and digital wallets over physical cash.
The State Bank of Pakistan released a report today, showing that the Broad Money (M2) supply increased by Rs 820.67 billion in just one week. It has reached a total of Rs 43.46 trillion.
However, the most surprising detail was the fall in cash circulation. Physical cash in the market dropped by more than Rs100 billion, while bank deposits saw a huge rise of Rs910 billion.
This trend shows that Pakistan’s move toward a digital economy is getting stronger. With better 5G and fiber to the home (FTTH) services, more people are shifting towards digital currency. This change also helps make the economy more transparent and gives banks more funds to support private businesses.
Banking System Gains Strength
So far, the total bank deposits have increased by Rs1.94 trillion this fiscal year. This growth allows banks to finance new projects in sectors like technology, manufacturing, housing.
The SBP also noted that with the growth in confidence in digital banking, more people in both urban and rural areas are choosing formal banking services to manage their money.
Financial experts believe that more digital transactions could also help control inflation over time. As more money moves through the monitored banking system, tax collection can improve. It also signals that the overall economy could become more stable in the future.
