KARACHI: Pakistan received gross inflows of $222 million through the Roshan Digital Account (RDA) in January, up from $203 million the month before, the central bank’s data showed on Tuesday.
This upward trend reflects the continued confidence of overseas Pakistanis in the country’s economic recovery, bolstered by key measures under the International Monetary Fund (IMF) loan programme. From the total RDA funds, $11 million was repatriated, $141 million was utilised locally, and there was a net repatriable liability of $70 million.
Since the launch of the RDA in September 2020, Pakistan has received a total of $9.56 billion in inflows. Of this amount, $1.71 billion has been repatriated, and $6.05 billion has been utilised. By the end of January 2025, the number of digital accounts reached 778,697.
Saad Hanif, head of research at Ismail Iqbal Securities, said that the ongoing increase in RDA inflows demonstrates the growing attractiveness of this initiative, which aims to draw foreign investment from Pakistanis living abroad. The monthly inflows indicate sustained interest from existing account holders.
“Notably, the net repatriable liability (NRL), which represents the portion of funds that can be repatriated back to account holders, stood at $1.8 billion, accounting for 18.8 per cent of the total RDA inflows. This indicates a continued commitment by overseas Pakistanis, as the bulk of the funds remain invested domestically, with $6.05 billion utilised within Pakistan,” Hanif said.
He thinks the steady upward trend in monthly inflows points to the ongoing confidence in Pakistan’s economic recovery, supported by key actions under the IMF programme. “Foreign investors, particularly non-resident Pakistanis, are responding positively to the country’s improving macroeconomic indicators, including fiscal consolidation and economic stabilisation measures. As a result, the RDA initiative remains a crucial pillar in strengthening Pakistan’s foreign exchange reserves and overall economic health,” he added.
SBP figures showed that net investments of $1.33 billion have been made through the RDA from September 2020 to January 2025. Of this total, $479 million was invested in conventional Naya Pakistan Certificates (NPCs), while $799 million was invested in Islamic NPCs. Roshan equity investments reached $59 million, and other liabilities amounted to $36 million. This leaves a remaining balance of $428 million in accounts.
The RDA facility, in collaboration with commercial banks, enables the Pakistani diaspora to open a digital bank account in Pakistan. The account can be used for investing, banking, and payments. Remittances from overseas can also be sent to Pakistan via the RDA.
Remittances to Pakistan surged by 32 per cent to $20.8 billion in the seven months through January. Analysts predict that sustained remittances and a lower trade deficit will propel Pakistan to report a current account surplus for the fourth consecutive month in January. Nevertheless, Pakistan relies on loans from the IMF and friendly nations to meet its external debt repayment obligations.
Fitch Ratings noted in its recent commentary that Pakistan’s external financing needs will remain significant in the coming year. The South Asian nation is required to repay over $22 billion in external debt during the current fiscal year, which includes nearly $13 billion in bilateral deposits.
The IMF’s mission is expected to visit Islamabad next month to review Pakistan’s economic performance under the $7 billion Extended Fund Facility programme. A successful review will pave the way for the country to secure the next $1 billion loan tranche from the global lender.