- Experts say decline in RDA inflows is attributed to central bank’s decision not to revise its rates offered on the USD-denominated NPCs
Inflows under the Roshan Digital Accounts (RDA) decreased another 3% month-on-month to $141 million in November, down from $146 million in October 2022 and the lowest since December 2020, when they were $140 million.
Cumulative inflows hit $5.4 billion at the end of November, 27 months since the programme was launched, according to data released by the State Bank of Pakistan (SBP) on Thursday.
Data shows that out of the overall $5.436 billion deposited in RDAs, $3.430 billion or almost 63.1% have been invested in Naya Pakistan Certificates (NPCs).
Of this, $1,750 million have been invested in conventional NPCs, whereas $1,680 million have been invested in Islamic NPCs.
Just $47 million, or less than 1%, has made its way into the Pakistan Stock Exchange (PSX).
Experts say the decline in RDA inflows is attributed to the central bank’s decision not to revise its rates offered on the USD-denominated NPCs. On the other hand, central banks around the globe have jacked up their policy rates, making investments in NPCs less attractive for the Pakistani overseas community, say experts.
Overseas Pakistanis from 175 countries have so far opened some 498,934 accounts under RDA. On a monthly basis, the number of accounts opened increased by 2.7%.
The RDA is an initiative of the SBP, in collaboration with commercial banks in Pakistan, to provide innovative banking solutions to NRPs, including Non-Resident Pakistan Origin Card (POC) holders, seeking to undertake banking, payment and investment activities in the country.
The initiative was launched in September 2020 by the SBP.