"RDA Records 7% Surge in September - A Boon for Pakistan's Economy"
In a promising development for the Pakistan economy, the Roshan Digital Account (RDA) saw a 7% increase in foreign currency inflows in September, reaching $139 million. Despite the nominal rise of $9 million compared to August, this reflects the ongoing impact of measures against Hawala-Hundi operators and the appeal of Naya Pakistan Certificates. It is anticipated that RDA inflows will continue to improve in the coming months, aided by strengthened workers' remittances and a government initiative to raise the rate of return on investment.
Karobar
KARACHI 10/17/2023: In a promising sign for the Pakistan economy, September saw a remarkable uptick in foreign currency inflows through the Roshan Digital Account (RDA). Data released by the central bank on Monday revealed a 7% increase, with inflows totaling $139 million. This boost contributed to a grand total of $6.75 billion in inflows over the course of 37 months.
While financial experts celebrated this growth, they also highlighted the $9 million increment in RDA inflows compared to August. This increment is a testament to the ongoing success of measures taken against Hawala-Hundi operators and the allure of Naya Pakistan Certificates (NPCs).
Topline Research unveiled that since the launch of the RDA facility for overseas Pakistanis in September 2020, the average monthly RDA inflow stood at $183 million.
AHL Research analysis further revealed that out of the $6.75 billion in gross inflows, expatriates had withdrawn $1.49 billion and utilized an additional $4.12 billion within the country, resulting in a net amount of $1.14 billion.
Breaking it down, overseas Pakistanis held a net investment of $266 million in conventional NPCs, another $402 million in Shariah-compliant NPCs, $20 million in the Pakistan Stock Exchange (PSX), and the remaining $429 million was safely deposited in their bank accounts.
Experts highlighted that the crackdown on currency smuggling and Hawala-Hundi operators had a positive ripple effect on workers' remittances, which surged to $2.20 billion in September. This surge instills confidence in even greater RDA inflows in the coming months.
Moreover, the government's recent decision to raise the rate of return on investment in NPCs to 6% is designed to attract more investment and bolster the country's foreign exchange reserves. Effective marketing of this rate hike is key to raising awareness among non-resident Pakistanis about the benefits of RDA.
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