“Good news from SBP. Roshan Digital Account achieves more milestones. Inflows crossed $1.5 bn on Friday, with investment in Naya Pakistan Certificates surpassing $1 bn,” Prime Minister Imran Khan tweeted.
Good news from SBP. #RoshanDigitalAccount achieves more milestones. Inflows crossed $1.5 bn on Friday, with investment in Naya Pakistan Certificates surpassing $1 bn. Accounts & deposits have set new records since the $1 bn event 2 months ago. https://t.co/sEe2wiOYrG pic.twitter.com/hAIx2Rko4Z
— Imran Khan (@ImranKhanPTI) June 27, 2021
The accounts and the deposits had set new records since $1bn inflow was recorded two months ago, he said.
In April, the capital inflow via the government’s Roshan Digital Account crossed the $1 billion mark. Imran Khan then went on Twitter expressing his gratitude towards the “overseas Pakistanis for their overwhelming response.” The premier had also thanked the State Bank of Pakistan and the commercial banks, “for achieving this significant milestone in such a short period.”
Alhamdulillah, funds received through #RoshanDigitalAccount have crossed $1bn. I would like to thank our overseas Pakistanis for their overwhelming response; also appreciate the efforts of SBP & banks for achieving this significant milestone in such a short period. #1billionRDA pic.twitter.com/YNksGLXzpM
— Imran Khan (@ImranKhanPTI) April 24, 2021
The RDA’s were basically introduced to allow Non-Resident Pakistanis (NRPs) to partake in banking, payment and investment activities in Pakistan without being physically present in the country.
Through RDA’s, NRP’s can now have access to online banking, domestic funds transfer, payment of utility bills and tuition fees. Moreover, they can also invest in government bills, stock exchange, and real estate sector with the option of full repatriation. This new banking solution aims to encourage Pakistanis living abroad to invest in their own country and help elevate the nation’s economy.
On the investments made through Roshan Digital Accounts, account holders won’t have to file any tax returns. A full and final rate of 10% withholding tax will be charged on profits, instead, saving the account holders from a lot of hassle.
SBP has also launched Naya Pakistan Savings Certificate with the aim of boosting the country’s economy by attracting foreign investments. They are high-interest yielding sovereign investment certificates issued by the State Bank of Pakistan (SBP) for Foreign Currency Value Account holders (FCVA) and Pakistani Rupee Value Account holders (NRVA).
They offer lucrative risk-free returns for the investors over different maturities and are also presenting the NRP’s with an opportunity to play their part in the development of a progressive Pakistan. NPCs offer attractive risk-free returns over different maturities. The buyers can own the certificate in US dollar with the highest interest rate of 7pc and in Pak rupees with the highest rate of 11pc per annum provided the investment is made for 5 years. They are available in both conventional and Shariah compliant versions administered by the State Bank of Pakistan.
Though the incumbent government has been making concentrated efforts to attract foreign currency by introducing different schemes for the diaspora, none of them have been able to garner such a response.
According to financial analysts, the inflows till now have been extremely encouraging and can be a good substitute for hot money.