Pakistan’s Cash in Circulation Jumps by Rs. 1.1 Trillion in 2024-25

Pakistan’s Currency in Circulation (CIC) increased by Rs 1,108 billion (12.1 percent) during July-March FY 2024-25 compared to a decrease of Rs 498 billion (-5.4 percent) during the same period last year, according to the Economy Survey 2024-25. Bank Deposits mobilization (including demand, time, and RFCD) has observed an increase of Rs 490 billion (1.8 percent) against an increase in deposits of Rs 2,706 billion (12.4 percent) during the same period last year. As a result, the currency to deposit ratio increased to 37.8 at the end of March 2025 against 35.4 last year, suggesting a growing preference for cash holdings over bank deposit. The survey said this may partly reflect increased interest in alternative avenues offering higher returns, such as equities, amid improving stock market performance and investor sentiment, alongside expectations of declining interest rates.