Key Takeaways
- Roshan Digital Account (RDA) inflows have risen to nearly $300 million.
- Finance Minister Muhammad Aurangzeb attributes the increase to strategic fund relocation.
- Minister encourages overseas Pakistanis to invest in sectors beyond real estate.
Finance Minister Muhammad Aurangzeb announced that inflows from the Roshan Digital Account (RDA) have increased to nearly $300 million, up from over $200 million previously. This rise is attributed to strategic fund relocation amid regional conflicts, according to Aurangzeb's remarks at the Remittance and RDA Roadshow in London.
Aurangzeb encouraged overseas Pakistanis to explore investment opportunities beyond real estate, particularly in the industrial sector. He stated, 'Now what we have to try to do is not let it just go into real estate or the Naya Pakistan Certificate.'
The minister highlighted the importance of directing these funds towards productive investments, emphasizing, 'So, now it’s not a question of inflows back into Pakistan, but where this is being directed and invested.'
Aurangzeb also noted that the country's import cover has improved to roughly three months, indicating a significant point in terms of foreign exchange reserves. He credited this improvement to enforcement, digitalisation, and technology, rather than new taxes.
The RDA, launched by the State Bank of Pakistan (SBP) in September 2020, aims to provide innovative banking solutions to Non-Resident Pakistanis (NRPs) through a digital and online process. By the end of August 2026, inflows through RDA reached $13.9 billion.
While the RDA has been praised for its digital innovation and formalising remittance channels, it has also faced criticism for creating a 'liability-driven dollarism,' where a significant portion of inflows are either repatriated or consumed domestically, with a smaller percentage contributing to durable foreign exchange reserves or long-term productive investments.
Aurangzeb stressed the need for trust and credibility in the Federal Board of Revenue (FBR), noting that tax revenues have grown by 40% over the last two years. He attributed this growth to enforcement, digitalisation, and technology.
The minister's remarks come as part of a broader strategy to ensure that remittances are directed towards productive investments, rather than just real estate or short-term financial instruments.
Given some of the conflict situation, people are doing their strategic relocations, and as part of those strategic relocations, where we used to get whatever $200 million-plus in terms of our RDA inflows, those have consistently been close to $300 million.
Muhammad Aurangzeb, Finance Minister
Now what we have to try to do is not let it just go into real estate or the Naya Pakistan Certificate.
Muhammad Aurangzeb, Finance Minister
