KARACHI: Prime Minister Imran Khan on Friday launched an initiative by Pakistan’s central bank to secure investment from overseas Pakistanis in the country’s housing sector while calling it a “game changer” for the national economy.
Roshan Apna Ghar (RAG) is exclusively designed for non-resident Pakistanis who will be able to utilize the facility to digitally buy a property in their homeland.
Pakistani expatriates will also be able to build or renovate a house in their country by utilizing their own investment or securing bank financing through Roshan Digital Account, another initiative launched by the State Bank of Pakistan (SBP) last year.
“Roshan Apna Ghar is a game changer since it will help us attract a substantial amount of money at a time when Pakistan desperately needs dollars,” the prime minister said while addressing a ceremony in Islamabad. “We can reduce the prevailing gap between exports and imports by taking such initiatives in the short run.”
Pakistan’s import bill amounted to $56.4 billion during the last fiscal year (FY21) and its export revenue was $25.3 billion. The country recorded a trade deficit $31 billion, and its current account deficit stood at $1.85 billion.
“If this scheme works, I am hopeful that the gap between imports and exports will be filled by inflows received from overseas Pakistanis,” he said.
The prime minister also praised the Roshan Digital Account (RDA), saying it was an excellent platform for the overseas nationals to digitally connect to their country’s banking system and meet their financial needs in Pakistan.
The initiative, which was inaugurated last September, has so far accumulated $2 billion in deposits.
“RDA is now a very well-established brand which has so far connected over 215,000 expats with the country’s banking system and attracted over $2,050 million since its launch in September last year,” SBP Governor Dr. Reza Baqir informed while addressing the ceremony.
He said RDA took about eight months to cross the first major milestone of $1 billion while the next billion arrived in less than four months, indicating an increasing momentum.
Baqir said the financing of the newly launched housing scheme was available in both conventional and Shariah-compliant variants at attractive rates for a period of three to 25 years.
According to the central bank, the initiative will also be helpful for those Pakistanis abroad who do not own a house since they will be able to get the required financing at economical rates starting from three percent under “Mera Pakistan Mera Ghar” scheme.
Independent analysts say the initiative will have a positive impact for the overall economy of the country.
“Investment in the real estate sector by overseas Pakistanis will increase construction activities in the country which will benefit 40 other allied industries,” Tahir Abbas, research head at Arif Habib Limited, said. “The construction push will create more job opportunities and increase the income of mainly laborers.”
