RDA: Pakistan receives $3.63bn by Feb’22

March 07, 2022 (MLN): Foreign exchange inflows through Roshan Digital Account (RDA) reached $3.63 billion by February 2022 since its launch in September 2020, showing the growing confidence of non-residents Pakistanis (NRPs), the latest data released by State Bank of Pakistan showed.

Of $3.63bn, around 68% or $2.49bn was invested in high-return Naya Pakistan Certificates (NPCs) during eighteen months. Meanwhile, a small part of the $35 million investment has been observed in the equity market.

Meanwhile, NRPs get a profit rate of 5.5% on three-month, 6% on six-month, and 6.5% on 12-month dollar-denominated NPCs. For three- and five-year certificates, the return is 6.75% and 7% respectively.

The profit rates on local currency-denominated certificates vary from 9.5% to 11% over different tenors.

So far, 365,182 accounts have been opened from around 175 counties across different Pakistani banks.

In the month of February 2022 alone, the overseas Pakistanis deposited $250mn into RDA.

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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