RDA: Inflows reach $3.16mn by December'21

January 5, 2022 (MLN): Foreign exchange inflows through Roshan Digital Account (RDA) reached $3.16 billion by December 2021 since its launch in September 2020, indicating the increasing confidence of non-residents Pakistanis (NRPs), the latest data released by State Bank of Pakistan showed.

Of $3.16bn, around 68% or $2.15bn was invested in high-return Naya Pakistan Certificates (NPCs) during sixteen months with $1.19bn invested in the conventional NPCs and $957mn in Islamic certificates of this instrument. Meanwhile, a small part of the $32 million investment has been observed in the equity market.

These inflows helped build up the country’s foreign exchange reserves as the government is facing a high current account deficit amid huge import bills and weakening of Rupee.

So far, 322,463 accounts have been opened from around 175 counties across different Pakistani banks.

In the month of December 2021 alone, the overseas Pakistanis deposited $244mn into RDA compared to $239mn last month.

Since the start of the RDA, a banking facility for Pakistani abroad, the 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.

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