The Roshan Digital Account (RDA), which has enabled nonresident Pakistanis to invest in lucrative assets back home, has attracted foreign currency inflows of over $480 million in the first five months.
The initiative proved to be a win-win scheme as it offered attractive returns to the overseas Pakistanis.
On the other hand, the inflows kept building the country’s foreign currency reserves.
“The foreign currency inflows through the RDA initiative are gradually gaining momentum,” State Bank of Pakistan (SBP) Governor Reza Baqir said while speaking at the launch of RDA services by Habib Metropolitan Bank on Friday.
So far, around 86,000 accounts have been opened by the overseas Pakistanis in the banks operating across Pakistan.
“We have received over $480 million from Pakistanis in 97 countries around the globe,” he said.
Out of nearly $483 million received so far, the non-resident Pakistanis have invested $327 million in Naya Pakistan Certificates (NPCs).
Presenting the breakdown, he said overseas Pakistanis invested $165 million in the conventional NPCs while another $145 million was invested in Shariah-compliant NPCs over the last four to five months.
He said that the improvement in the country’s foreign currency reserves would help paint a positive outlook for Pakistan’s economy.
Pakistan’s foreign currency reserves stand at around three-year highs at $13 billion against $7 billion in May-June 2018.
“Today, the current account is in surplus due to the implementation of market-based exchange rate regime – a key institutional change,” he said.
Habib Metropolitan Bank President and Chief Executive Officer Mohsin Ali Nathani said his bank had opened around 100 RDAs and received nearly $5 million from overseas Pakistanis in the first few days.