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RDA attracts $9.34bn as of December

Our Correspondent
Sunday, Jan 12, 2025

KARACHI: Pakistan received gross inflows of $9.342 billion from overseas Pakistanis through the Roshan Digital Account (RDA) as of December 2024, according to the latest data from the State Bank of Pakistan (SBP).

In December, the monthly inflows increased to $203 million, up from $186 million in November. This growth reflects expatriate Pakistanis’ confidence in the country’s economy, largely supported by critical measures implemented under the International Monetary Fund (IMF) loan programme.

Between September 2020 and December 2024, of the $9.342 billion received through the RDA, $1.7 billion has been repatriated while $5.911 billion has been utilised locally. Consequently, the net repatriable liability remained at $1.73 billion. As of December, the number of digital accounts opened reached 778,713, an increase from 768,394 accounts in the previous month.

In December, $13 million in RDA funds were repatriated, while $113 million were utilised locally, resulting in a net repatriable liability of $76 million. The RDA initiative is crucial for strengthening Pakistan’s foreign reserves and remittances.

According to SBP data, remittances from Pakistanis working abroad rose to $17.8 billion in the first six months of the current fiscal year, compared with $13.4 billion during the same period last year, marking a 33 per cent increase.

The ongoing rise in remittances can be largely attributed to the consistent flow of funds through official banking channels, following the country’s crackdown on the unofficial buying and selling of dollars. The stability of the Pakistani rupee and stricter regulatory controls in the foreign exchange market have also supported these remittance flows.

As of January 3, the SBP’s foreign exchange reserves amounted to $11.7 billion, sufficient to cover over two months of imports. The SBP’s figures showed that, net investments totalling $1.267 billion have been made through the RDA from September 2020 to December 2024. Of this total, $460 million was invested in conventional Naya Pakistan Certificates (NPCs), while $748 million was invested in Islamic NPCs. Furthermore, Roshan equity investments reached $59 million, and other liabilities totalled $39 million, leaving a balance of $425 million remaining in accounts.