Roshan Digital Account records $9.564 billion inflows

KARACHI: The Roshan Digital Account (RDA) has recorded inflows totalling $9.564 billion, with the majority of these funds being utilised domestically.

According to the latest update from the State Bank of Pakistan (SBP), as of January 31, the gross inflows into RDA reached $9.564 billion. Of this amount, $1.711 billion has been repatriated, while $6.052 billion was used within the country. Consequently, the net repatriatable liability stands at $1.8 billion.

Launched in 2020 following over $4 billion in outflows from treasury bills and Pakistan Investment Bonds (PIBs) during the COVID-19 pandemic, the RDA has not managed to fully substitute the earlier domestic bond investments, and overall inflows remain modest.

Banking professionals and analysts have pointed out a trust deficit among overseas Pakistanis investing in various state-backed securities, largely due to the ongoing political instability that has persisted for the past three years, hindering economic stability.

Roshan Digital Account inflows cross $8 billion in May 2024

Pakistan’s demand for foreign currency far exceeds the RDA inflows, and despite record remittances, the significant challenge remains with the debt servicing on foreign loans.

Sources indicate that a primary goal of President Zardari’s recent visit to China was to negotiate a debt rollover, as approximately $9 billion in Chinese debt is set to mature by the end of June 2025.

The nation’s reserves are inadequate for repaying this debt, and utilising even a portion of the State Bank of Pakistan’s (SBP) current foreign exchange holdings could destabilise the exchange rate.