RDA inflows increase 7% in September
The inflow of foreign currency through the Roshan Digital Account (RDA) rose by around 7% to $139 million in September, taking the total to $6.75 billion in 37 months, according to the central bank data released on Monday.
Financial experts said the improvement in RDA inflows was nominal at $9 million as compared to $130 million in August, indicating that the full impact of the crackdown on Hawala-Hundi operators and the hike in return on Naya Pakistan Certificates (NPCs) was yet to come.
Topline Research reported that average RDA inflows stood at $183 million a month since the launch of the facility for overseas Pakistanis in September 2020.
AHL Research added that out of the gross inflows of $6.75 billion, the expatriates had already withdrawn $1.49 billion. Besides, they have utilised another $4.12 billion in the country, reducing the net amount to $1.14 billion.
Giving a breakdown, it said, the overseas Pakistanis held net investment of $266 million in the conventional NPCs, another $402 million in te Shariah-compliant NPCs, $20 million in the Pakistan Stock Exchange (PSX) and the remaining $429 million was deposited in their bank accounts.
Read Forex reserves rise $31m to $7.65b
Experts pointed out that the crackdown on currency smugglers and Hawala-Hundi operators had improved workers’ remittances to $2.20 billion in September and voiced hope that RDA inflows would also improve meaningfully in the coming months.
Secondly, the government recently revised up the rate of return on investment in NPCs up to 6% to attract more investment with the aim of stabilising the country’s foreign exchange reserves. The government, however, needs to aggressively market the rate hike to create wider awareness of RDA benefits among the non-resident Pakistanis.
Shell Pakistan
Shell Pakistan, which is up for sale, has reported that Prax Overseas Holding Ltd had shown its intention to acquire up to 77.42% of the issued paid-up share capital with management control.
Earlier, an international media outlet reported that Saudi Aramco was exploring the possibility of making a bid for Shell PLC assets in Pakistan.
Indus Motor closure
Based on the current level of inventory of manufactured vehicles and parts shortages due to supply chain challenges, Indus Motor has announced that it has decided to close its production plant for one month from October 17 to November 17, 2023.
Published in The Express Tribune, October 17th, 2023.
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