The State Bank of Pakistan (SBP) has announced significant enhancements to the Roshan Digital Accounts (RDA) to further facilitate non-resident Pakistanis (NRPs) in investing and financing opportunities.
The move is part of the SBP’s ongoing efforts to attract foreign investments and provide a seamless banking experience for overseas Pakistanis.
Effective immediately, NRPs can now directly invest through the rupee-based RDA in shares of companies in Pakistan and units of funds established and operated by private fund management companies licensed by the Securities and Exchange Commission of Pakistan (SECP). This expansion of investment options aims to diversify opportunities for NRPs and encourage their participation in the economic development of Pakistan.
Furthermore, to encourage investment in real estate within the country, the SBP has allowed financing facilities to RDA holders for real estate transactions through their PKR Account using digital channels. This initiative aims to streamline the process of property acquisition for NRPs and promote investments in the real estate sector.
In a notable development, the SBP has expanded the avenues for inflow of funds into rupee-denominated RDA by permitting transactions through Money Transfer Operators (MTOs). This change provides NRPs with an additional and convenient means of sending remittances into their RDA, especially for those who may not have a bank account abroad.
Previously, investment options through rupee-denominated RDA were limited to registered government securities, listed securities on the stock exchange, mutual funds, real estate with self-financing, and term deposits of banks. The recent changes not only broaden the scope of investment but also enable NRPs to pursue property purchases in Pakistan with bank financing.
The decision to allow inflows through MTOs is particularly significant, as it opens up a more convenient and cost-effective channel for remittances, catering to NRPs who might not have access to a bank account abroad.
The remittances received through RDA have already surpassed USD 2 billion, underscoring the success and popularity of the initiative among the overseas Pakistani community. The SBP acknowledges and values the contribution and trust of NRPs in the RDA initiative and affirms its commitment to further enhance the features of RDAs to meet the complete banking needs of overseas Pakistanis seamlessly.
These developments align with the SBP’s broader strategy to leverage technology and innovation to improve financial inclusion, promote investment, and foster economic growth. The Roshan Digital Accounts have emerged as a pivotal platform in connecting the global Pakistani diaspora with the financial landscape of their homeland.
