RDA inflows reach $8.7bn as of September 2024

KARACHI: Pakistan received the gross inflows of $8.7 billion under the Roshan Digital Accounts (RDAs) as of September 2024, central bank data showed on Thursday.

This indicates the continued confidence of overseas Pakistanis in the country’s economic recovery, which has been supported by the International Monetary Fund’s (IMF) loan programme.

Inflows received through RDA slightly increased to $168 million in September from $165 million in the previous month.Out of the total $8.749 billion in funds received between September 2020 and September 2024, $1.663 billion has been repatriated, and $5.554 billion has been used locally. As a result, the net repatriable liabilities stayed at $1.532 billion.

Saad Hanif, head of research at Ismail Iqbal Securities, said that the funds received through RDA reflect the increasing appeal of this initiative aimed at attracting foreign investment from Pakistanis abroad.

“Although the number of new accounts opened saw a slight decline of 3.0 per cent MoM [month-on-month], the overall inflows continued to rise, with a 2.0 per cent MoM increase in total funds received, underscoring the sustained interest from existing account holders,” Hanif said.

“Notably, the net repatriable liability, which represents the portion of funds that can be repatriated back to the account holders, stood at $1.53 billion, accounting for 17.52 per cent of the total RDA inflows,” he said and added this indicates a significant commitment by overseas Pakistanis, as the bulk of the funds remain invested domestically.

According to Hanif, the steady upward trend in monthly inflows suggests continued confidence in Pakistan’s economic recovery, bolstered by key actions taken under the IMF programme.“Foreign investors, particularly non-resident Pakistanis, are responding positively to the country’s improving macroeconomic indicators, which include fiscal consolidation and steps toward economic stabilization,” he said.“As a result, the RDA initiative remains a crucial pillar in supporting Pakistan’s foreign exchange reserves and overall economic health,” he added.