Roshan Digital Account: cumulative inflows reach $3.63bn

Inflows under Pakistan’s Roshan Digitial Account (RDA) reached $3.632 billion at the end of February 2022, 18 months since the programme was launched, said the State Bank of Pakistan (SBP) on Tuesday.

As per the SBP, an inflow of $250 million was recorded in February alone, compared to an inflow of $222 million in December, a month-on-month increase of over 12%.

Roshan Digital Account: cumulative inflows reach $3.38 billion

Out of the overall $3,632 million deposited in RDAs, $2,494 million or almost 68.6% have been invested in Naya Pakistan Certificates (NPCs), the data shows. Out of the total amount invested in NPCs, $1,352 million have been invested in conventional NPCs, whereas $1,142 million have been invested in Islamic NPCs.

Meanwhile, a meagre amount of $35 million i.e. 1% of the total funds has made its way into the Pakistan Stock Exchange (PSX) through RDAs.

The central bank data also revealed 365,182 accounts have been opened so far from across 175 countries during the 18-month period. On a monthly basis, the number of accounts opened increased by 6.6%.

Launched last year in September, the RDA is an initiative of the SBP for Non-Resident Pakistanis (NRP), formed in collaboration with commercial banks operating in Pakistan.

It allows NRPs to open an account without requiring physical presence either in Pakistan or in any embassy or consulate. It has also facilitated NRPs in conducting banking, payment, and investment activities in the country.

The initiative is part of the government’s strategy to attract foreign inflows, much-needed by the country facing a widening current account deficit, amid a jump in the import bill.

As per July-January 2021-22 data, the current account deficit crossed the $11-billion mark with growth in imports continuing to outpace exports. This pushes Pakistan to seek different sources of foreign exchange to meet its balance of payment needs.

The Pakistan Tehreek-e-Insaf (PTI) government has taken a number of measures to attract NRPs. Last year, the government launched the Sohni Dharti Remittance Programme (SDRP), which will award points to overseas Pakistanis for sending remittances through legal channels.