The State Bank of Pakistan (SBP) announced on Tuesday that inflows under the Roshan Digital Accounts (RDA) reached $4.356 billion at the end of May 2022, 21 months after the program was introduced.
According to the SBP, an inflow of $189 million was recorded in May, a decrease of 23% month over month from the inflow of $245 million in April.
According to data, $2.839 billion, or about 65.2 percent, of the $4.356 billion placed in RDAs has been invested in Naya Pakistan Certificates (NPCs). Conventional NPCs received $1,493 million of the total amount invested in NPCs, whereas Islamic NPCs received $1,346 million. Meanwhile, through RDAs, a pittance of $39 million, or 1%, has made its way into the Pakistan Stock Exchange (PSX). During the 21 months, 416,837 accounts have been opened from 175 countries, according to central bank data. The number of accounts opened increased by 3% every month.
Roshan Digital Accounts inflows Hit $4.2 Billion Mark
The Roshan Digital Accounts is a joint initiative of the SBP and commercial banks operating in Pakistan to provide innovative banking solutions to Non-Resident Pakistanis (NRPs), including holders of the Non-Resident Pakistan Origin Card (POC), who want to do banking, payment, and investment in Pakistan.
The SBP began the project in September 2020, promising a return of up to 7% on US dollar investments.
With the country’s foreign exchange reserves diminishing due to debt and import obligations, Roshan Digital Accounts inflows are critical. Last week, SBP reserves slipped below the $10 billion thresholds.
The decrease in reserves comes as Pakistan continues to negotiate with the International Monetary Fund (IMF) to resurrect the stalled Extended Fund Facility. Its delay has pushed the currency to new lows, with the rupee hitting 203 versus the US dollar in intra-day trading on Tuesday.