Overseas Pakistanis allowed direct investment in companies through Roshan Digital Account

Published September 1, 2021
The State Bank of Pakistan said that it has trying hard to involve maximum number of overseas Pakistanis into the domestic economy. — APP/File
The State Bank of Pakistan said that it has trying hard to involve maximum number of overseas Pakistanis into the domestic economy. — APP/File

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

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

Opinion

Editorial

Tough talks
Updated 16 Apr, 2024

Tough talks

The key to unlocking fresh IMF funds lies in convincing the lender that Pakistan is now ready to undertake real reforms.
Caught unawares
Updated 16 Apr, 2024

Caught unawares

The government must prioritise the upgrading of infrastructure to withstand extreme weather.
Going off track
16 Apr, 2024

Going off track

LIKE many other state-owned enterprises in the country, Pakistan Railways is unable to deliver, while haemorrhaging...
Iran’s counterstrike
Updated 15 Apr, 2024

Iran’s counterstrike

Israel, by attacking Iran’s diplomatic facilities and violating Syrian airspace, is largely responsible for this dangerous situation.
Opposition alliance
15 Apr, 2024

Opposition alliance

AFTER the customary Ramazan interlude, political activity has resumed as usual. A ‘grand’ opposition alliance ...
On the margins
15 Apr, 2024

On the margins

IT appears that we are bent upon taking the majoritarian path. Thus, the promise of respect and equality for the...