Qudsia Bano

The Roshan Digital Account (RDA) initiative continues to play a pivotal role in boosting the forex reserves, with total inflows reaching $9.768 billion by the end of February 2025, according to the latest data released by the State Bank of Pakistan (SBP), reports WealthPK.

The inflows showed slight fluctuations, with $204 million received in February, down from $222 million in January but still higher than the $203 million recorded in December 2024, indicating steady engagement from overseas Pakistanis. Launched in 2020, the RDA provides Non-Resident Pakistanis (NRPs) and Pakistan Origin Card (POC) holders with streamlined access to Pakistan’s banking and investment systems.

These accounts have not only opened new financial avenues for overseas Pakistanis but have also become a stable source of foreign exchange inflows, supporting the country’s external account. Almost 797,350 accounts have been registered under the RDA programme by February 2025, indicating the growing trust of overseas Pakistanis in the country’s financial system.

The Naya Pakistan Certificates (NPCs) have received significant inflows of $459 million, Islamic NPCs $860 million and Roshan Equity Investments $59 million. “The RDA has proven to be a game-changer in tapping into the diaspora’s financial potential. It has created a new channel for foreign currency inflows, helping stabilise the foreign exchange reserves while also enhancing investment activity in key sectors,” said Dr. Ahsan Malik, an economist at the Institute of Bankers Pakistan.

Experts believe that the growing inflows through RDA is a sign of confidence in Pakistan’s macroeconomic management and ongoing financial reforms. The government’s consistent engagement with overseas Pakistanis and improvement in the digital infrastructure have further enhanced the programme’s reach. “The fact that nearly $10 billion has been routed through RDA in under five years shows that Pakistan can successfully engage its diaspora with the right mix of policy, technology, and transparency,” said Sana Tariq, Head of Research at Insight Securities.

“These funds are not just inflows…they represent remittances being channelled into structured investments, helping diversify our external financing base.” The inflows also contribute to easing the pressure on the rupee and supporting the country’s foreign exchange reserves at a time when the external debt repayments remain high. The RDA holders have access to a range of services, including investment in government securities, stock markets, and real estate, as well as utility payments and donations.

The convenience and versatility of these accounts have played a key role in expanding their appeal. The policymakers are now exploring further enhancements in the RDA ecosystem, including expanding investment products, introducing Shariah-compliant real estate offerings, and increasing partnerships with commercial banks to broaden reach.

As Pakistan continues to face fiscal challenges and balance-of-payments pressure, initiatives like the RDA are seen as crucial tools to engage the diaspora, attract foreign investment, and reduce dependency on external borrowing. With overseas Pakistanis showing sustained interest and commitment, the RDA is expected to remain a vital contributor to the country’s financial stability and long-term economic growth.

Credit: INP-WealthPk