- Cumulative inflow reaches $4.606 billion in 22 months since start of programme
- SBP says $800mn repatriated by RDA holders during this period
Cumulative inflow under Roshan Digital Accounts (RDA) reached $4.606 billion at the end of June 2022, 22 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 June alone, an increase of 32% month-on-month when compared with the inflow of $189 million in May.
"Net number is still not released by SBP but even on a gross level, it is a big deal, especially in the current macro environment," said Fahad Rauf, Head of Research at Ismail Iqbal Securities Limited, in a note.
Later, in a tweet, the SBP said that around $800 million have been repatriated by RDA holders in 22 months since start of the programme in Sep 2020 "to meet their personal needs in their countries of residence".
"As a result, net inflows amount to over $3.8 billion."
Meanwhile, out of the overall $4.606 billion deposited in RDAs, $2.987 billion or almost 64.85% have been invested in Naya Pakistan Certificates (NPCs), data shows. Out of the total amount invested in NPCs, $1,591 million have been invested in conventional NPCs, whereas $1,396 million have been invested in Islamic NPCs.
Meanwhile, a meagre amount of $40 million or less than 1% has made its way into the Pakistan Stock Exchange (PSX) through RDAs.
The central bank data also says 429,364 accounts have been opened so far from across 175 countries during the 22-month period. On a monthly basis, the number of accounts opened increased by 3%.
The RDA is an initiative of the SBP, in collaboration with commercial banks operating in Pakistan, to provide innovative banking solutions to Non-Resident Pakistanis (NRPs), including Non-Resident Pakistan Origin Card (POC) holders, seeking to undertake banking, payment and investment activities in Pakistan.
The initiative was launched in September 2020 by the SBP and offers up to 7% profit on US dollar investment.
Facing dwindling foreign exchange reserves on account of debt and import payments, inflows under RDAs are vital for the country.
Meanwhile, SBP-held reserves rose sharply by some $2 billion during last week supported by the arrival of Chinese inflows.
According to weekly foreign exchange report issued by the central bank, the SBP received proceeds of Chinese Development Bank loan amounting to RMB 15 billion, which was equal to $2.3 billion. After accounting for external debt repayment, SBP’s reserves increased by $ 2.071 billion to $ 10.309 billion, up from $8.238 billion a week earlier.
Pakistan also remains engaged in talks with the International Monetary Fund (IMF) over revival of the stalled Extended Fund Facility.