RDA inflow clocks in at $125mn in February, up 14% month-on-month

Inflows coming through the Roshan Digital Account (RDA) clocked in at $125 million in February, up 14% as compared to $110 million in January.

Cumulative inflow under RDA has now hit $5.8 billion at the end of February, 30 months since the programme was launched, according to data released by the State Bank of Pakistan (SBP) on Wednesday.

However, the SBP data does not convey cumulative outflow, which reports suggest has increased in recent months.

Roshan Digital Accounts: inflow clocks in at meagre $110mn in January

Meanwhile, SBP data shows that out of the overall $5.811 billion deposited in RDAs, $3.655 billion or almost 62.9% have been invested in Naya Pakistan Certificates (NPCs).

Of this, $1,833 million have been invested in conventional NPCs, whereas $1,822 million have been invested in Islamic NPCs.

Just $49 million, or less than 1%, has made its way into the Pakistan Stock Exchange (PSX).

The inflows through RDA have been on a declining trend since June 2022. Experts attribute the development to the ongoing economic crisis in the country.

Last year, the SBP notified increase in the profit for Conventional Naya Pakistan Certificates with effect from Jan 23, 2023 as it looked to match pace with the hike in key policy rate.

Background

Overseas Pakistanis from 175 countries have so far opened 536,676 accounts under RDA. On a monthly basis, the number of accounts opened increased by 2.25%.

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.