RDA inflows reach $8.58bn

KARACHI: Pakistan received gross inflows of $8.581 billion under the Roshan Digital Account (RDA) as of August 2024, data from the State Bank of Pakistan showed on Wednesday.

Inflows received through RDAs slightly increased to $165 million in August from $161 million in the previous month.The purpose of RDAs is to generate foreign currency deposits and create a reliable source of funding for the country. These inflows support the nation’s foreign exchange reserves and aid in the repayment of its foreign debt, leading to a strengthening of the Pakistani rupee relative to the dollar.

The SBP’s foreign exchange reserves stood at $9.47 billion as of September 6.Out of the total $8.581 billion in funds received between September 2020 and August 2024, $1.646 billion has been repatriated, and $5.441 billion has been used locally. The net repatriable liabilities consequently stayed at $1.494 billion.

Non-resident Pakistanis can digitally open a bank account in Pakistan using RDA from any location in the world. They can also send investments and remittances from overseas to Pakistan using this account. Both international and local currencies can be used to open these digital accounts. Customers can invest using both conventional and Islamic Naya Pakistan certificates, which are provided by the government, once their account has been authorized. Investments can also be made in Islamic savings and term certificate products offered by banks, as well as the local stock market.

According to SBP data, a total of $1.495 billion in net investments were made through RDAs between September 2020 and August 2024. Out of this amount, $370 million was invested in conventional Naya Pakistan Certificates (NPCs), while $638 million was invested in Islamic NPCs. Moreover, $33 million was invested in the stock market, with other liabilities totalling $32 million. Net repatriable liabilities amounted to $1.495 billion, and the account balance stood at $412 million.