Roshan Digital Accounts (RDA), a scheme designed to attract investment from overseas Pakistanis, recorded a significant rise in inflows during March, marking a positive development for Pakistan’s financial stability.
The State Bank of Pakistan (SBP) reported a 29% increase in RDA inflows for March compared to February, reaching $182 million. This brings the total inflows to $7.66 billion since the scheme’s launch in September 2020.
The breakdown of these inflows reveals that while $17 million has been repatriated so far, $135 million has been utilized locally, resulting in a net $30 million outstanding for repatriation. Notably, $4.8 billion of the total inflows have been used domestically, easing pressure on the SBP to provide foreign currency.
“This growth is encouraging for both the SBP and the government,” the SBP stated, highlighting the scheme’s contribution to improving Pakistan’s import and debt servicing capacity.
Further positive news came from a surge in remittances received in March, exceeding those of February and supporting the country’s foreign exchange reserves. Additionally, foreign investment in treasury bills witnessed a promising start in April, surpassing inflows into the equity market.
The number of RDA accounts also saw an upward trend, increasing to 679,792 in March from 668,701 in the previous month. Notably, Naya Pakistan Certificates (NPCs) attracted the highest investment, with $840 million invested, split between conventional and Islamic instruments.
While RDA has successfully attracted overseas investment, it hasn’t yet replicated the pre-pandemic levels observed in treasury bills and Pakistan Investment Bonds. Before COVID-19, the country received over $4.5 billion in domestic bonds, but a significant portion left within a few months.
Overall, the rise in RDA inflows presents a positive step for Pakistan’s financial well-being. Increased foreign currency reserves, coupled with rising investment and remittances, bode well for the country’s economic stability.
