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RDA: Inflows drop by 23% in May’22

RDA: Inflows drop by 23% in May’22
RDA: Inflows drop by 23% in May’22
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June 07, 2022 (MLN): Foreign exchange inflows through Roshan Digital Account (RDA) have reached $4.4 billion by May 2022 since its launch in September 2020, the latest data released by State Bank of Pakistan showed.

In the month of May 2022 alone, the overseas Pakistanis deposited $189mn into RDA which was 23% lower when compared with $245mn recorded in the previous month.

As per the data, of the total $4.4bn, around 65% or $2.8bn was invested in high-return Naya Pakistan Certificates (NPCs) during one year and nine months. Meanwhile, a small part of the $39 million investment has been observed in the equity market through RDA.

Out of the total amount invested in NPCs, $1.49bn have been invested in conventional NPCs, whereas $1.34bn have been invested in Islamic NPCs.

So far, 416,837 accounts have been opened from around 175 counties across different Pakistani banks, SBP data showed.

In a recent podcast, Acting Governor SBP, Dr Murtaza Syed said that RDA inflows are intact. “Daily inflow is $8-10 million,” he said. “It is a product of the State Bank, while more products are in the pipeline to attract overseas Pakistanis,” he added.

Since the start of the RDA, a banking facility for Pakistani abroad, the previous government had made a number of decisions to make the scheme more attractive by reducing the tax compliance costs. Further, the government has made the taxation system easy, convenient, and hassle-free for NRPs to open and operate these accounts without being physically present in the country.

It is pertinent to note that the funds in these accounts can be fully repatriated without the prior approval of the SBP.

The new coalition government said that it is fully committed to support RDA which allows Pakistan’s diaspora to invest in their homeland on very attractive terms.

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Posted on: 2022-06-07T11:09:20+05:00