close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
March 13, 2021

RDAs receive $671 million; investors cross 100,000 mark

Business

March 13, 2021

KARACHI: Roshan digital accounts (RDAs), purpose-built to attract foreign exchange in Pakistan, have received $671 million in less than seven months, the central bank said on Friday.

“Roshan Digital Account has crossed 100,000 accounts. They have been opened from over 100 countries around the world,” the State Bank of Pakistan wrote on Twitter. “Deposits have reached $671 million, with half of these coming in the last 8 weeks alone.” 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.

Remittances are the cost-free external inflows and vital to bolster the economy with modest exports growth and reduce reliance on burdensome foreign debts.

The government’s initiatives to encourage foreign inflows from expats and residents with foreign assets abroad have been met with rousing response so far.

Overall, foreign remittances continued to show uptrend. In July-February, workers remittances increased 24.1 percent to $18.7 billion. In February alone, the remittance inflows exceeded the monthly exports level by slight margin. Unlike remittances of $2.3 billion, exports stood at around $2 billion in February. Analysts said remittances are much-needed to support the country's external account. The country’s foreign exchange reserves increased to $20.4 in earlier March from $18.8 as of last June.

With RDAs, accountholders can benefit from a wide range of services, such bill payments of their family members. They can also avail opportunities to invest in dollar- and rupee-denominated Naya Pakistan certificates. They can also have an access to stocks trading through this digital account. The investment in saving certificates also has repatriation flexibility and funds can be repatriated through the digital account without any hurdles.

Analysts said the inflows should continue to turn around the economy under the scrutiny of the Financial Action Task Force (FATF). Pakistan is desperate to get out of the grey list of the global financial system’s watchdog FATF to completely explore potential of external inflows from over 10 million expatriates and residents with foreign assets.

The grey-listed Pakistan is currently facing scrutiny for its financial system’s capability to do away with money laundering and terrorist financing. The status holds back the actual growth potential as it creates difficulties in international fund transfers usually punctuated by additional security checks.

Though the country has already met most of the conditions of the FATF, it still needs to be fully compliant to standards to curb money laundering and terrorist financing.