KARACHI: The State Bank of Pakistan on Tuesday allowed overseas Pakistanis to directly invest into the shares of companies in Pakistan and units of funds through the rupee-based Roshan Digital Accounts (RDA).
Overseas Pakistanis have been allowed investment in Pakistani companies as well as funds operated by a private fund management company licensed by the Securities Exchange Commission of Pakistan.
The SBP said that it has trying hard to involve maximum number of overseas Pakistanis into the domestic economy. The new step has been taken to provide further investment and financing opportunities to non-resident Pakistanis (NRPs), the central bank added.
“To facilitate investment in real estate in Pakistan, financing facility has been allowed to RDA holders through their Pak rupee account using digital channels. In addition, inflow of funds into rupee denominated RDA has been allowed through Money Transfer Operators (MTOs),” said the SBP.
Earlier, investment through rupee denominated RDAs was allowed in registered government securities, listed securities on the stock exchange, mutual funds, real estate with self-financing and term deposits of the banks.
“The above changes will not only provide more investment opportunities to non-resident Pakistani but also facilitate them to purchase property in Pakistan through bank financing,” said the SBP.
Likewise, earlier the flow of funds into RDAs was allowed only through banking channels. Now inflows from abroad into RDA have been allowed through MTOs, said the SBP adding that this would provide another convenient and economical avenue for sending remittances, particularly to the NRPs who might not have a bank account abroad.
“The remittances received through RDA have already crossed $2billion,” the SBP added.
Published in Dawn, September 1st, 2021