January 15, 2024 (MLN): Total inflows into Roshan Digital Accounts (RDA) during the calendar year 2023 fell 33% YoY or $797 million to $1.62 billion, according to data released by the State Bank of Pakistan (SBP).
This brings the total cumulative inflows into RDA to almost $7.2bn since its inception.
During the year, 139,898 new accounts were opened as compared to 188,696 accounts opened a year earlier, showing a decline of 25.86% YoY.
RDA is a major initiative from SBP to enhance and promote digitalization in Pakistan.
Non-Resident Pakistanis (NRPs) can digitally open a bank account in Pakistan through an online process.
Funds available in the Roshan Digital account can be remitted back from Pakistan without any approval from one's bank or SBP.
This is one of the key benefits as previously NRPs were reluctant to invest in Pakistan due to excessive regulatory requirements and complex procedures for repatriation.
RDA is a crucial source of foreign exchange inflows for the cash-strapped country struggling with external funding gaps.
Pakistan has total external financing requirements of around $24.6bn in FY24, while the foreign exchange reserves stand at $8.15bn.
Going into the details on RDA made available by the central bank, the amount repatriated and locally utilized during the year was $1.72bn showing that the Net Repatriable Liability of RDA decreased by 39.24% or $1.11bn when compared to last year.
Out of $1.72bn, the amount repatriated during the year was $312m while $1.41bn was utilized locally.
Total cumulative repatriation and local utilization stood at $5.98bn out of which $1.54bn has been repatriated while locally utilized amount was $4.44bn making the Net Repatriable Liability (NRL) $1.22bn or 16.89% of total RDA.
Breakup of the NRL shows $331m was still invested in Conventional Naya Pakistan Certificates (NPC), showing a decline of 18.67% or $76m YoY.
Moreover, the data showed that $455m was in Islamic NPC, recording a decline of 0.87% or $4m when compared with last year.
During 2023, roshan equity investment rose significantly by 36.36% to $30m, as against $22m invested till 2022.
Balances in Accounts stood at $375m recording a fall of 8.3% YoY, while Other Liabilities stood at $24m showing a rise of 26.3% YoY.
Copyright Mettis Link News
Posted on: 2024-01-15T13:30:04+05:00
