Roshan Digital Accounts Inflows Cross $3 Billion

Foreign exchange inflows through the Roshan Digital Accounts (RDAs) were recorded at a total of $3.16 billion by the end of December, according to data released by the State Bank of Pakistan (SBP). The country registered inflows of $244 million in December as compared to $239 million in November, which depicts a month-on-month increase of 2.1 percent. According to the official numbers, 322,463 RDAs have been opened since they were launched, representing a 7.6 percent increase on a monthly basis. The monthly inflows through the RDAs were $244 million, showcasing slightly higher inflows than in November. Further analysis suggests that over 68 percent ($2,149 million) of the $3.16 billion placed in the RDAs was invested in Naya Pakistan Certificates (NPCs). Conventional NPCs received $1.192 billion of the entire investment in NPCs, whereas Islamic NPCs collected $957 million. Meanwhile, the RDAs deposited $32 million in the Pakistan Stock Exchange. Since the introduction of the RDAs, the government has made several decisions to make the scheme more appealing, as well as revisions to lower the cost of tax compliance for overseas Pakistanis. Non-Resident Pakistanis (NRPs) can conveniently open and operate these accounts as the government has made the taxation process straightforward, convenient, and hassle-free. Ultimately, the steady positive trend in RDA inflows may help Pakistan fend off inflationary pressures.