KARACHI: Pakistan’s central bank, dispelling the impression that overseas Pakistanis were withdrawing their investment made in Pakistan through Roshan Digital Accounts (RDA), said on Saturday that the inflows in the accounts in fact had crossed over $4 billion.
RDA launched in September 2020 for Non-Resident Pakistanis (NRP) is providing digital access to all conventional account services including funds transfer, bill and fee payments, and e-commerce in their home country.
RDA is a major initiative of the State Bank of Pakistan (SBP), in collaboration with commercial banks operating in Pakistan. These accounts provide innovative banking solutions for millions of Non-Resident Pakistanis (NRPs), including Non-Resident Pakistan Origin Card (POC) holders, seeking to undertake banking, payment and investment activities in Pakistan.
“Today I want to share a good news that since we started the initiative, one and half year ago, the inflows have crossed over $4 billion. Overseas Pakistani from 175 countries have opened around 0.4 million accounts,” Dr. Reza Baqir, the governor of SBP, said in video message released on Saturday.
“Not only I want to share the good news but also want to thank overseas Pakistanis who benefited from our initiative.”
The governor said the purpose of RDA initiative was to provide easy banking solution to overseas Pakistanis in the country.
The ouster of prime minister Imran Khan through a no confidence vote last week had triggered a social media campaign about mass withdrawals of the investment made through RDAs.
However, the central bank governor rubbished the smear campaign against the initiative.
“Rumors on social media are circulating that $1 billion or $2 billion from Roshan Digital Accounts have been withdrawn or this scheme is being abolished and I want to give the message that the rumors circulating are absolutely wrong,” Baqir clarified.
The SBP governor informed that the scheme will not only continue but further products would be added to facilitate overseas Pakistanis.
“In the coming days more banks will offer the RDA schemes and more products would be offered through the RDA, including health insurance and life insurance for the relatives of overseas Pakistanis in their home country,” Baqir added.
He was optimistic that overseas Pakistanis will continue to contribute for the development and will remain connected with their country.
In March 2022, Pakistanis living in 175 countries opened more than 388,494 accounts and made over $3.9 billion investments including $1.42 billion in conventional Naya Pakistan Certificates (NPCs) and $1.23 billion in Islamic NPCs. The investment of $37 million was made in equities through stock exchange via RDA, according to the SBP data.
The RDA enables overseas Pakistanis to deposit and invest in Pakistan in US dollar, UK pound, euro and Pakistani rupee. Investors get return of 7% and 11% on five-year maturity in US dollar and in Pakistani currency, respectively.
