KARACHI: Pakistan has received $1.25 billion in Roshan Digital Accounts (RDA) since its beginning in September 2020 while the inflow has been increasing faster than the initial first quarter.

The State Bank of Pakistan (SBP) confirmed on Friday that the total inflows in RDA has reached $1.250bn and said the inflow has increased after achieving the $1bn mark. The inflow during the first seven months (September-April) was $1bn while May received $250m reflecting the increasing inflow.

The financial sector believes the country could receive up to $1bn in the next four months provided the inflow continues with the same pace.

The RDA crossed $500m in five months since September which was widely appreciated by the prime minister.

The RDA was launched for Non-Resident Pakistanis (NRPs) to enable them to remotely open bank accounts in Pakistan through online digital portals without physically visiting branches.

Using their RDAs, NRPs can now avail digital banking facilities, including access to online banking, domestic funds transfer, utility bills and tuition fee payment in Pakistan, as well as investments in government bills, stock exchange, and real estate sector with option of full repatriation.

It was a major initiative of SBP in collaboration with commercial banks operating in Pakistan. The main purpose of the initiative is to attract millions of Pakistanis living abroad by offering much higher returns on deposits compared to returns in the developed economies.

Along with the RDA account, the SBP launched a Savings Certificate Name as Naya Pakistan Certificate with the aim of boosting Pakistan’s economy by attracting foreign investments.

The buyers can own the certificate in US dollars with the highest interest rate of 7pc and in rupees with the highest rate of 11pc provided the investment is made for five years.

Several banks have accelerated their efforts to attract overseas Pakistanis while they are opening RDAs following the guidelines of the State Bank.

The State Bank’s previous effort to attract foreign investment through selling of domestic bonds (Treasury Bills and Pakistan Investment Bonds) yielded quick results till the first quarter of 2020 as they attracted $3.4bn but the emergence of Covid in the middle of March resulted in disinvestments.

Published in Dawn, June 5th, 2021