RDA hits $9.34b milestone
The Pakistani diaspora continues to make significant investments through the Roshan Digital Account (RDA), with total inflows reaching $9.34 billion by December 2024.
Of these funds, $5.91 billion have been utilised locally, while $1.7 billion have been repatriated, leaving a net repatriable liability of $1.73 billion. "Launched in September 2020, the RDA has become a crucial financial platform, facilitating $1.27 billion in net investments and bolstering economic connections with overseas Pakistanis," said Head of Equity Sales of Insight Securities, Ali Najib, in a comment to the ET.
Since its inception in September 2020, the RDA has facilitated net investments totalling $1,267 million.
The investments through the RDA include $460 million in conventional Naya Pakistan Certificates (NPCs), $748 million in Islamic NPCs, and $59 million in Roshan equity investments. Additionally, other liabilities are recorded at $39 million, and the balance in accounts stands at $425 million. As of December 2024, the net repatriable liability slightly increased to $1,731 million, reflecting the initiative's growing financial activity and its role in engaging overseas Pakistanis in the country's economy.
"The RDA initiative has become a significant indicator of confidence among the diaspora in Pakistan's financial system," AHL wrote.
Around 63.3% of the total RDA inflows have been channelled into Pakistan's local economy, including investments in NPCs, real estate, stock markets, and other local ventures, reflecting effective deployment of funds to stimulate domestic economic activities, said AHL. Some 18.2% have been repatriated, which indicates flexibility in the RDA framework that it can be repatriated without restrictions. Another 18.5% of funds can be repatriated, consumed, or invested in the local economy.
The RDA initiative has so far been a success in mobilising funds from Non-Resident Pakistanis (NRPs), with over 63% of inflows utilised locally. The manageable level of net repatriable liability and steady inflows highlight the scheme's effectiveness in supporting Pakistan's economy and foreign reserves. However, ensuring the continued trust of NRPs and promoting long-term investment avenues will be critical to sustaining this momentum.
Speaking to The Express Tribune, Ali Najib said, "The steady growth of RDA inflows is driven by attractive investment options like NPCs offering high returns, tax incentives, and Sharia-compliant choices."
A fully digital process, seamless repatriation, and government-backed trust have boosted investor confidence. In addition, effective global marketing and awareness campaigns, coupled with diaspora needs for secure and profitable investments, have further contributed, he added. Rising global inflation and low returns abroad also made RDA offerings appealing.
The initiative has bolstered Pakistan's foreign reserves, ensuring sustainability through diversified investment products, transparent governance, and macroeconomic stability is crucial to retaining NRPs' trust and maximising long-term economic benefits, he said.
Historically, the monthly repatriations peaked during mid-2022, followed by a gradual decline, while the cumulative net repatriable liability has consistently risen, reaching $1.73 billion by the end of 2024. Another trend highlights the steady progression of funds utilised locally, which dominate the total inflows, while repatriated funds also show consistent growth.