Karachi, May 21, 2024 – The inflows into Roshan Digital Accounts (RDAs) saw a 6 percent decline month-on-month (MoM) in April 2024. According to the State Bank of Pakistan (SBP), the inflows into RDAs recorded $171 million in April, down from $182 million in March.
Despite this decline, the overall number of RDAs continued to grow, reaching 689,650 by the end of April, an increase from 679,792 at the end of March, indicating a rise of 9,858 new accounts. This steady growth in the number of accounts highlights the sustained interest in RDAs among overseas Pakistanis, even amid fluctuations in monthly inflows.
Out of the total inflows of $171 million in April, $11 million has been repatriated, while $123 million has been utilized locally. This brings the net repatriable liability to $36 million for the month. Cumulatively, since the launch of the RDA initiative, the inflows have reached $7.831 billion by the end of April. Of this, $1.587 billion has been repatriated and $4.925 billion utilized within Pakistan, resulting in a total net repatriable liability of $1.319 billion.
of Outstanding Liabilities
The SBP’s data reveals that $840 million of the outstanding liability is held in Naya Pakistan Certificates (NPCs), with $317 million in conventional NPCs and $523 million in Islamic instruments. Additionally, $418 million is held as balances in RDA accounts.
Roshan Equity Investments, another component of the RDA scheme, saw a decrease in activity, with investments standing at $33 million by the end of April, reflecting a reduction from previous months.
The month-on-month decline in RDA inflows in April could be attributed to a range of factors, including global economic conditions, exchange rate volatility, and investor sentiment. However, the consistent increase in the number of RDAs suggests that the scheme remains attractive to the Pakistani diaspora.
The SBP and the government have positioned RDAs as a key initiative to attract foreign exchange and bolster the country’s financial stability. The ongoing efforts to enhance the features of RDAs, including competitive returns on NPCs and the introduction of more investment opportunities, are aimed at sustaining and increasing inflows.
While the 6 percent decline in RDA inflows in April is notable, the overall growth in account numbers and substantial cumulative inflows highlight the resilience and continued appeal of the RDA scheme. As the SBP and the government continue to refine and promote RDAs, these accounts are expected to play a significant role in Pakistan’s economic strategy, contributing to financial stability and investment growth in the long term.