Roshan Digital Account (RDA) launched in September 2020 and foreign exchange inflows via RDA reached $2.92 billion in November 2021 as per data released by the State Bank of Pakistan (SBP). The development is signaling the increase in confidence of non-residents Pakistanis (NRPs).
Out of $2.92bn, almost 68% or $1.99bn was invested in high-return Naya Pakistan Certificates (NPCs) during the fifteen months. A small portion of the $29 million investment has been observed in the equity market.
So far, 299,676 accounts have been opened from nearly 175 countries across different Pakistani banks.
Within the month of November 2021 alone, the overseas Pakistanis deposited $239mn into RDA.
Since the launch of RDA, a banking facility for Pakistanis residing abroad, the government had reduced tax compliance costs in order to attract Pakistanis abroad. 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 must be noted that the funds in these accounts can be fully repatriated without the prior approval of the central bank.