Inflow in RDA crosses $800m in six months

Published April 2, 2021
The Roshan Digital Account — a joint effort of the SBP and federal government — was inaugurated by Prime Minister Imran Khan in September. — Reuters/File
The Roshan Digital Account — a joint effort of the SBP and federal government — was inaugurated by Prime Minister Imran Khan in September. — Reuters/File

KARACHI: The Roshan Digital Account (RDA) has started picking up pace as it has crossed $800 million in six months, with the highest amount of $212m received in March, reflecting the rising trend of inflows.

“A big thanks to our Overseas Pakistanis! #RoshanDigitalAccount deposits have crossed $800m, after an inflow of $212m in March. Inflows have been accelerating every month since the RDA launch in September 2020,” the State Bank of Pakistan (SBP) tweeted on Thursday, as the total RDA deposits have reached $806m.

The Roshan Digital Account — a joint effort of the SBP and federal government — was inaugurated by Prime Minister Imran Khan in September. More than 20 commercial banks have so far joined the RDA.

According to bankers, the main purpose of RDA is to attract millions of Pakistanis living abroad by offering much higher returns on deposits than those in developed economies.

The State Bank said that RDA attracted $212m in March, the highest since the launch of the product. In February, it attracted $176m.

The State Bank said the $806m inflows came from over 100 countries in 110,000 accounts.

The government and SBP believe that the RDA has much higher potential as it offers a number of facilities to overseas Pakistanis which were not available before. At the same time, banking in Pakistan for expatriates has been made easy and safe.

In order to attract more investment, the State Bank has also launched a savings scheme — Naya Pakistan Certificate — offering significantly higher interest rates compared to those prevailing in most of the developed and developing economies. Buyers can own the certificate in US dollar with the highest interest rate of seven per cent and in the local currency with 11pc per annum provided the investment is made for five years.

Some bankers said that most of the investments were coming into the Naya Pakistan Certificate, but the State Bank has not provided its data yet.

Higher interest rate is the biggest attraction for investors who have large liquidity but limited options in the global market. The increasing inflows of foreign investment in the domestic bonds (Pakistan Investment Bonds) and the offer of over $5.3 billion for euro bonds launched by Pakistan this week reflect the large available liquidity for investments in the global market battered by the Covid-19 pandemic.

Published in Dawn, April 2nd, 2021

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Wayward ideology
02 Dec, 2022

Wayward ideology

Anyone who claims his legacy for themselves should not treat his words so whimsically.
Progressive stance
02 Dec, 2022

Progressive stance

THE timing of two encouraging developments in the fight against domestic violence in Pakistan could not have been...
China Covid protests
02 Dec, 2022

China Covid protests

PUBLIC protests are rare in China where the People’s Republic maintains order through a strict authoritarian code...
Punjab crisis
01 Dec, 2022

Punjab crisis

ADMINISTRATIVE chaos has ruled Punjab ever since the ouster of the PTI government in April, deepening the...
Quetta attack
01 Dec, 2022

Quetta attack

It would be foolishness of the highest order were the authorities to ignore the emerging threat.
World AIDS Day
01 Dec, 2022

World AIDS Day

AS countries mark World AIDS Day on Dec 1, a timely report from Unicef has renewed concerns about the severe...