Roshan Digital Account Inflows Reach $168 Million in September 2024

The Roshan Digital Accounts (RDA) initiative, aimed at facilitating overseas Pakistanis in making investments in their home country, has shown steady progress in the month of September 2024. Gross foreign exchange inflows through RDAs reached $168 million during the month, a slight increase from the $165 million recorded in August 2024. This development reflects the continued interest of the Pakistani diaspora in contributing to the country’s economic growth through this streamlined financial platform.

Trends in Net Inflows and Investments

Net inflows for September 2024, calculated as gross inflows minus funds repatriated, came in at $151 million. While this figure is slightly below the six-month average of $167 million, it remains above the overall average of $145 million since the RDA’s launch in September 2020. The consistent inflow figures indicate a sustained trust in the RDA program, which has been designed to provide banking services and investment opportunities to overseas Pakistanis through a secure and accessible channel.

By the end of September 2024, the total funds received through the RDA program have risen to $8.749 billion. Of this amount, $1.663 billion has been repatriated by account holders, while $5.554 billion has been utilized within Pakistan, supporting various local investments. As of the close of September, the net repatriable liability stood at $1.532 billion, highlighting a significant portion of the inflows that remain engaged in the country’s economy.

Breakdown of Investments and Utilization

From the launch of the RDA program in September 2020 through to September 2024, net investments made through RDAs have reached $1.532 billion. These investments are diversified across different categories, including conventional and Islamic investment opportunities, as well as equity investments in the local stock market.

NPC Investments (Conventional): These amounted to $380 million, providing a more traditional investment route for overseas Pakistanis.

NPC Investments (Islamic): This segment, catering to the demand for Shariah-compliant investment options, recorded investments of $656 million, indicating strong interest in Islamic financial products.

Roshan Equity Investments: Investments in the equity market reached $41 million, offering account holders a means to directly participate in the growth of the Pakistani stock market.

Balances in Accounts: The balances held within RDAs totaled $420 million, while other liabilities amounted to $34 million, providing a comprehensive view of the funds under management within the RDA framework.

RDA Growth and its Role in Economic Stability

Since the inception of the RDA initiative, 746,251 accounts have been opened by overseas Pakistanis, demonstrating a growing engagement with the financial opportunities provided by the program. The initiative has allowed account holders to access a range of services, from saving and investing in different schemes to making direct payments for utilities and other expenses in Pakistan.

The RDA program, which is supported by the State Bank of Pakistan (SBP), aims to channel the savings and investments of the global Pakistani community into the country’s economy, thereby contributing to economic stability and growth. The inflows received through RDAs have helped bolster the country’s foreign exchange reserves and have become a key source of foreign exchange inflow at a time when Pakistan faces challenges in maintaining economic stability.

Future Prospects for RDA Growth

As the RDA initiative continues to mature, there is potential for further growth in both the number of accounts and the total inflows. The platform’s appeal lies in its user-friendly digital interface, which allows Pakistanis living abroad to manage their finances and contribute to their home country’s economy from anywhere in the world.

The recent increase in inflows to $168 million in September indicates that despite global economic uncertainties, the RDA program remains a favored avenue for the Pakistani diaspora to invest in their country’s future. With ongoing efforts to introduce more investment options and enhance the user experience, RDAs are likely to play an even more significant role in attracting foreign exchange inflows in the months to come.

The sustained growth of the RDA initiative not only reflects the trust of overseas Pakistanis in the program but also underscores the importance of innovative financial solutions in addressing Pakistan’s economic needs. As the government and the SBP continue to focus on facilitating and expanding RDA offerings, the program stands to make a lasting impact on the country’s economic resilience and development.