- Initiatives include complaint management system 'Sunwai', insurance products, pension plans
KARACHI: The State Bank of Pakistan (SBP) has decided to further enhance the scope of Roshan Digital Accounts (RDA) by introducing a complaint management system “Sunwai”, insurance products, pension plans and Roshan Business Account in the near future.
Syed Ali Raza, Senior Joint Director Digital Innovation and Settlement Department SBP, in SBP Podcast Episode 6 on Friday, revealed that the SBP is also engaged with the federal government to revise PKR-denominated NPCs rates and is hopeful this will be achieved sooner than later. He also rejected the rumors of massive outflow from the RDA.
The RDA initiative was launched in September 2020 allowing Non Residents Pakistanis (NRPs) the access to the Pakistani financial market. It was further augmented by investment and consumer products such as Naya Pakistan Certificate, Roshan Apni Car etc. at attractive rates. As of June 2022, approximately some 429,364 Roshan Digital Accounts have been opened with an inflow of $4.6 billion out of which 65 percent or $2.9 billion were invested in Naya Pakistan Certificate (NPC). The Roshan Apni Car has also been very successful wherein 1,550 cars have been delivered and a total financing of Rs8 billion.
Ali Raza informed that the total inflows through RDA do not remain in accounts but are invested in augmented RDA products or stock market or either consumed in Pakistan. Approximately, only $500 million remain in the accounts.
Further, the opinion that SBP is masking the actual data of inflows to RDA is also not true. Only those inflows are considered fresh, which arrive from abroad while the rumor that NPCs on maturity are considered as fresh inflows is incorrect.
NPC is one of the best investment instruments, which is providing up to 7% to overseas Pakistanis, he added. He further mentioned that apprehension that there have been large outflows from RDA is very misleading and far from reality.
“There have been outflows, however, these were due to the maturity of investments in NPCs which started in early 2021 and the repatriation of these funds is a key feature of RDA around which the product was designed to garner confidence in the public,” he added.
The SBP representative said another reason for the outflows is rising inflation due to which people are accessing their savings to make ends meet.
Copyright Business Recorder, 2022