RDA inflows reach $6.1bn

KARACHI: Pakistan's Roshan Digital Account (RDA) has seen significant foreign currency inflows from citizens living abroad, totaling $6.102 billion between September 2020 and April 2023, the State Bank of Pakistan data showed on Monday.

In April, RDA gross inflows experienced a 12 percent month-on-month decline, amounting to $136 million. As of April 2023, a total of 561,617 digital accounts have been opened by non-resident Pakistanis (NRPs) hailing from 175 different countries.

Over a period of 32 months, $3.9 billion in total gross investments were made through NayaPakistan Certificates (NPCs). The figures from the SBP indicate that $1.921 billion was invested in conventional NPCs, while $1.894 billion was invested in Islamic certificates. Additionally, expatriates invested $50 million into the stock market.

Analysts suggest that the revisions made by the SBP to NPC rates have contributed to the improvement in flows through RDA, making them more competitive. Consequently, a large portion of RDA flows has been invested in NPCs.

However, the decline in April's monthly inflows can be attributed to political and economic uncertainty prevailing in the country. In January, the government enhanced the profit rates on conventional and Islamic certificates denominated in both local and foreign currencies, which analysts deem a necessary step after global interest rates rose. Furthermore, the depreciation of the rupee has encouraged overseas Pakistanis to increase their investments in NPCs.