KARACHI: Foreign fund inflows through Roshan digital accounts (RDAs) have reached $1.25 billion in nine months since the launch as overseas Pakistanis are encouraged to wire funds and investment digitally, speakers said on Friday.
Over 160,000 Pakistanis from 170 countries have invested through RDAs, they said addressing a webinar, which was arranged by Habib Bank in collaboration with the State Bank of Pakistan and Pakistan High Commission Canada.
RDA, launched in September last year, provides innovative banking solutions to millions of non-resident Pakistanis and resident Pakistanis with declared offshore assets, who need a secure and convenient facility, to undertake banking-payments, fund-transfers and investment activities in Pakistan, remotely, from abroad. RDAs are a secure and protected mode of investment and banks having robust financial health and strong IT solutions have been roped in the scheme to make it a success.
Pakistan High Commissioner to Canada Raza Bashir urged the overseas Pakistanis to take full advantage of the incentives offered under the Roshan digital accounts.
“An investment of up to $1.25 billion in RDAs and repatriation of $24.2 billion home remittances in 10 months by overseas Pakistanis were a clear marker of the level of trust overseas Pakistanis had in the economic policies and different initiatives taken for strengthening the financial sector by the government,” Bashir said in a statement.
The high commissioner said Pakistan High Commission Canada and all its consulates are ready to serve the Pakistani community and provide them with hassle-free consular services.
It was noted that out of $1.25 billion deposited by overseas Pakistanis in Roshan digital accounts, $800 million had been invested in Naya Pakistan Certificates (NPCs) due to attractive interest rates available under the scheme.
The State Bank of Pakistan (SBP) launched NPCs in October aimed to offer attractive investment opportunities to overseas Pakistanis and resident Pakistanis with assets held abroad. These certificates are available in conventional and Shariah compliant versions. Most of the investment is coming into the NPCs due to highly lucrative interest rates being offered on these investments.
The government allows the tax paid at source on profits on investments in NPCs, shares, mutual funds, and property to be full and final and reducing the cost of transferring funds internationally to and from RDA accounts. NPCs are offering higher interest rates than those of developed and developing economies. These certificates offer annualised 7 percent rate of returns in US dollars and 11 percent in local currency on investment made for five years.