In a positive development for Pakistan’s foreign exchange reserves, inflows through Roshan Digital Accounts (RDAs) surged to $165 million in August 2024, marking a rise from $161 million in July 2024 and significantly higher than the $130 million recorded in August 2023. This growth in inflows reflects the sustained interest from overseas Pakistanis in utilizing the RDA platform for investment and remittance purposes.
The State Bank of Pakistan (SBP) reported these figures, highlighting the increasing appeal of RDAs among the Pakistani diaspora. Since its launch in September 2020, the RDA initiative has facilitated direct investment and banking services for non-resident Pakistanis (NRPs), allowing them to manage their financial activities seamlessly from abroad.
In terms of net inflows—calculated as gross inflows minus repatriated funds—RDA clocked $143 million in August 2024. This figure is slightly lower than the six-month average of $169 million, but still consistent with the long-term monthly average of $144 million since the program’s inception.
By the end of August 2024, total RDA inflows since the program’s launch had reached an impressive $8.581 billion. Of this amount, $1.646 billion had been repatriated, while $5.441 billion had been utilized locally within Pakistan. The net repatriable liability—the funds eligible for withdrawal—stood at $1.494 billion, underscoring the program’s role in retaining foreign investments in Pakistan’s economy.
The success of the RDA program is further highlighted by the robust growth in investments made through these accounts. From September 2020 to August 2024, net investments totaled $1.036 billion, with a significant portion directed toward Islamic National Prize Bonds (NPC) and conventional bonds. NPC Investments (Islamic) accounted for $638 million, while NPC Investments (Conventional) stood at $370 million. These numbers demonstrate the popularity of Shariah-compliant investment options, a key feature of the RDA program, which has attracted a considerable number of investors seeking ethical financial products.
Meanwhile, Roshan Equity Investments reached $41 million, reflecting the contribution of RDAs to Pakistan’s stock market. In addition to investments, the Balances in Accounts were recorded at $412 million, and Other Liabilities stood at $33 million. These figures underscore the versatility of the RDA platform, which provides multiple avenues for financial participation by overseas Pakistanis.
The RDA platform has also seen continued growth in terms of account openings. As of August 2024, a total of 735,113 accounts had been opened, representing a 1.6 percent increase compared to the previous month. This growth demonstrates the program’s success in attracting non-resident Pakistanis who wish to take advantage of the investment and financial opportunities offered through RDA.
The Roshan Digital Account initiative has played a critical role in bolstering Pakistan’s foreign exchange reserves while offering NRPs a convenient way to engage with the country’s financial system. The program provides access to a wide range of banking services, including investments in Naya Pakistan Certificates (NPCs), Islamic bonds, and stock market investments, making it a comprehensive tool for managing finances from abroad.
The SBP’s efforts to promote RDAs and provide attractive investment options for overseas Pakistanis have helped in stabilizing the country’s foreign exchange reserves during challenging economic times. With the Asian Development Bank (ADB) and other international financial institutions closely monitoring Pakistan’s economic reforms, initiatives like the RDA are crucial in ensuring the inflow of much-needed foreign exchange into the country.
Moving forward, the sustained growth of RDA inflows will be essential in mitigating balance of payment pressures and supporting Pakistan’s broader economic stability. The government and central bank continue to prioritize policies that facilitate and incentivize overseas Pakistanis to invest in the country, ensuring that initiatives like RDA remain a cornerstone of Pakistan’s financial landscape.
As the RDA program expands, it is expected to contribute even more significantly to Pakistan’s economic development by channeling investments into critical sectors, thereby fostering growth and stability in the long run.