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RDA Inflows Cross $2 Billion Through Roshan Digital Account

Overseas Pakistanis have emerged as major contributors to economic progress in their homeland, as their deposits in foreign currency denominations at local banks have surpassed $2 billion under the Roshan Digital Accounts (RDAs), bolstering the stability of foreign currency reserves.

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Outside of RDA, abroad Pakistanis sent the third-largest workers’ remittances in July 2021, the first month of the current fiscal year 2021-22, totaling $2.71 billion.

Both conventional remittances and RDA remittances boosted the country’s ability to make overseas payments easily and contributed to a faster rate of economic growth. The nation’s foreign currency reserves increased to $17.62 billion for the week ending August 6, 2021, from approximately $7 billion roughly two years prior.

In FY21, the current account deficit fell to a 10-year low of 0.6% of GDP, compared to 1.7% in FY20. He noted that the net foreign borrowing has stayed nearly unchanged as it is only being used to settle the existing foreign debt.

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The second phase of the digital banking infrastructure will enable Pakistanis living abroad to remotely order and pay for things such as pharmaceuticals for their family members in Pakistan.

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