September 01, 2021 (MLN): Overseas Pakistanis can invest in housing and real estate remotely and digitally in banks' pre-approved projects or any other property through SBP’s new initiative Roshan Apna Ghar (RAG).
For the first time in the history of Pakistan, State Bank has made it possible to allow Overseas Pakistanis to buy or finance a house through an entirely digital and online process without the need to visit a bank branch.
In a video message posted on the central bank's Twitter handle, State Bank Governor Dr Raza Baqir said the remittances received through Roshan Digital Account (RDA), launched on September 10, 2020, have already crossed USD2billion. He greatly values the contribution and trust of overseas Pakistanis in this initiative and assures them that it would continue to enhance the feature-set of the RDAs so that the accounts can seamlessly cater to their complete banking needs.
Underlining contours of the Roshan Apna Ghar scheme, the governor said the investments are repatriable and subject to full and final taxation; the 1 percent tax on value at the time of sale and purchase thereby, there is no need to file a tax return.
NRPs can remit their funds back from Pakistan without any approval from the bank or SBP.
Talking about the common real estate investing fears, he highlighted that there are a bunch of banks involved in the scheme which will add to the confidence of overseas Pakistanis.
“They can see the pre-approved project list on banks’ website in which banks themselves giving loans to developers and builders,” he said.
Speaking at the launching ceremony held on August 28, Finance Minister Shaukat Tarin said that various schemes have been launched for Pakistanis abroad, but the Roshan Apna Ghar scheme will prove to be a game-changer and will help in boosting remittances.
In order to provide further investment and financing opportunities to NRPs, SBP recently has allowed direct investment through the rupee-based Roshan Digital Accounts (RDA), into the shares of companies in Pakistan and units of funds established and operated by private fund management company licensed by SECP.
Moreover, to facilitate investment in real estate in Pakistan, a financing facility has been allowed to RDA holders through their PKR Account using digital channels. In addition, the inflow of funds into rupee-denominated RDA has been allowed through Money Transfer Operators (MTOs), the notice issued by SBP said.
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