Rate disparity

There are two broad categories of foreign currency accounts in Pakistan. The latest category of forex accounts are digital foreign currency accounts (RDA). The other category of foreign currency accounts was introduced a long time ago in 1974 and is still active. Both categories of accounts also allow overseas Pakistanis to transfer outside Pakistan any amount out of their inward remittances. However, the interest rate on an RDA account is much higher. I cannot understand why the financial authorities are offering such widely different rates on these accounts when the value of the dollars in them is the same. I happen to have both categories of foreign accounts. Since I am getting a much lower return on my ordinary foreign currency account relative to my RDA account, I want to transfer my money in the former to the latter. But, I am being told by my bank that the SBP does not allow this kind of transfer. I would like to point out that this a discriminatory policy and request the SBP and finance ministry to review it urgently so that all overseas Pakistanis can get higher interest rates on their remitted funds.

Ejaz Ahmad Magoon

Dubai

UAE