40pc RDA funds invested in Naya Pakistan Certificate: SBP

Out of the total $1.5 billion funds deposited by overseas Pakistanis through Roshan Digital Account (RDA), around US $ 600 million (40 percent) was invested in Naya Pakistan Certificate

Official source of State Bank of Pakistan (SBP) informed that this was followed by Account Balances and Transaction, which stood at US $ 465 million or 31 percent of the total amount whereas 28 percent or US $ 417 million was used in Islamic Naya Pakistan Certificates.

An amount of US $15 million, just one percent of the total was utilized in stock market whereas the real estate attracted lowest investment of dollar six million or just 0.4 percent of the total US $ 1.5 billion.

As per the monthly updates, the funds have been witnessing acceleration with every passing month as during the month of June (till June 25), US $ 242 million were deposited as compared to US $ 206 million in May 2021, US $ 249 million in April; US$ 212 million in March; US $ 176 million in February, US $ 168 million in January, US $ 140 million in December 2020, US $ 68 million in November 2020, US $ 33 million in October 2020 and US $ nine million in September 2020.

Likewise, the accounts opened in

RDA June 2021 stood at 21900 whereas in May as many as 31000 accounts were opened as compared to opening of 14700 accounts in April, 16000 accounts in March, 13700 in February, 16700 in January; 17000 in December 2020; 16700 in November, 16400 in October and 13700 accounts in September 2020.

It is pertinent to mention here that as many as 177,980 Roshan Digital Accounts (RDAs) have been opened by overseas Pakistan from around 171 countries of the world, depositing US $ 1.5 billion funds so far.

The sources said it takes only 48 hours to open Roshan Digital Account while these accounts provided an opportunity to the overseas Pakistanis to execute various banking operation through RDA including paying of utility bills, ATM transactions, e-commerce.

These accounts also enable them to invest in stocks, get car loans on markup rates as low as seven percent; invest in Naya Pakistan Certificates, buy property and even give charity.

In addition, there would be no tax on depositing amount in RDA and the customers would not have to file returns, however, there would be 10 percent withholding tax on profit only.

The SBP had to put in new regulations to allow this kind of presence-less on-boarding of customers and enable overseas Pakistanis to be able to open bank account in Pakistan, the sources said.