By Moaaz Manzoor

Pakistan’s reserve money increased to Rs14.28 trillion in the week ending May 8, 2026, according to the State Bank of Pakistan’s (SBP) weekly monetary statistics.

The latest SBP data showed reserve money rose to Rs14.281 trillion on May 8 from Rs14.240 trillion recorded a week earlier on May 1, reflecting an increase of around Rs40.4 billion.

Reserve money, often referred to as high-powered money, comprises currency in circulation and commercial banks’ deposits with the central bank and serves as an indicator of liquidity conditions in the economy.

Currency in circulation, which remained the largest component of reserve money, increased to Rs11.851 trillion by May 8 from Rs11.647 trillion a week earlier, registering an increase of nearly Rs204.3 billion.

Meanwhile, cash in tills held by commercial banks declined to Rs614.83 billion from Rs703.46 billion in the previous week, while other deposits with the SBP fell to Rs42.69 billion from Rs53.64 billion.

Banks’ deposits with the central bank stood at Rs1.771 trillion in the week ending May 8, down from Rs1.836 trillion recorded a week earlier.

The SBP data further showed that net foreign assets declined to Rs3.251 trillion on May 8 from Rs3.282 trillion on May 1. In contrast, net domestic assets increased to Rs11.030 trillion from Rs10.960 trillion during the same period.

Within domestic assets, net government sector borrowing rose to Rs2.146 trillion by May 8 from Rs1.540 trillion a week earlier. Borrowings for budgetary support by the federal government increased to Rs3.470 trillion from Rs2.941 trillion during the review period.

The data also showed that provincial governments continued maintaining negative balances with the banking system, although the magnitude narrowed slightly. Punjab government borrowing remained negative at Rs697.59 billion, followed by Sindh at negative Rs304.14 billion, Khyber Pakhtunkhwa at negative Rs94.29 billion and Balochistan at negative Rs68.42 billion.

Claims on scheduled banks declined slightly to Rs1.070 trillion from Rs1.076 trillion a week earlier. Within private-sector claims, industrial-sector borrowing remained the largest category at Rs395.97 billion, followed by export-sector borrowing at Rs332.90 billion, while agriculture-sector borrowing stood at Rs7.52 billion.

Other items net declined to Rs7.694 trillion from Rs8.221 trillion recorded a week earlier.

The latest monetary data indicate that liquidity conditions remained relatively stable despite fluctuations in government borrowing and foreign assets. The figures also suggest that reserve money trends continued to be shaped by fiscal operations, banking-sector liquidity conditions and movements in the SBP’s foreign exchange position.

Credit: INP-WealthPk