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Sunday, May 28, 2023
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Overseas Pakistanis sent $3.382 billion to Roshan Digital Account

According to the State Bank of Pakistan (SBP), cumulative inflows through RDA from overseas Pakistanis soared to $3.382 billion in the last 17 months. Important to note, the steady positive trend in the RDA inflows may help Pakistan fend off inflationary pressures.

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In welcoming news, the inflows through Roshan Digital Account (RDA) crossed the $3 billion mark. According to the State Bank of Pakistan (SBP), cumulative inflows through RDA from overseas Pakistanis soared to $3.382 billion in the last 17 months.

To clarify, RDA is a joint effort by the SBP and commercial banks to integrate the overseas diaspora with Pakistan’s banking system. RDA is an incentive for Non-Resident Pakistanis(NRPs) to invest in Pakistan. Higher returns to capital are being offered compared to the banks abroad because higher returns attract higher capital inflows. So far, expatriates from 175 countries opened 342,611 accounts in the last 17 months.

Pakistan registered inflows of $222 million in January 2022, as compared to $244 million in December 2021. This depicts a month-on-month decrease of nine percent.

Read more: Overseas Pakistanis can now redeem cash-rewards for sending remittances

Furthermore, according to reports, total investments made in Naya Pakistan Certificates (NPCs) came at $2.319 billion as of January 31, 2022. Additionally, Overseas Pakistanis invested $1.278 billion in conventional NPCs while $1.041 billion in Islamic NPCs. The non-resident Pakistanis invested $34 million in the equity market.

Important to note, the steady positive trend in the RDA inflows may help Pakistan fend off inflationary pressures. These inflows contribute to the buildup of a country’s foreign currency reserves and stabilize the local currency.

PTI’s commitment to overseas Pakistanis

On numerous occasions, the PTI-led government deemed overseas Pakistanis an asset owing to the generous inflow of remittances. Last month, SBP reported that workers’ remittances grew by 11.3 percent during the first half of the current fiscal year as compared to the corresponding period of last year.

The workers’ remittances during July-December 2021-22 were recorded at $15.8 billion, according to figures released by SBP.

As a result of overseas Pakistanis’ generous contributions to the country’s economy, the government goes to great ends to facilitate them.

Read more: PM Khan thanks NRPs as Roshan Digital Accounts cross $1 billion

Recently, the government announced to launch a residential project for Pakistanis living abroad. Under the Roshan Digital Account concept, the government will launch a residential facility for abroad Pakistanis at Park Road, Zone-4, Islamabad.