RDA inflows rise as regional conflict prompts strategic fund relocation: Aurangzeb
The inflows from Roshan Digital Account have risen to nearly $300 million from more than $200 million previously, partly driven by strategic relocation of funds amid regional conflict, Finance Minister Muhammad Aurangzeb said. The minister gave his remarks while addressing the Remittance and Roshan Digital Account (RDA) Roadshow in London, organised by UBL and Meezan Bank on Thursday. “Given some…
Finance Minister Muhammad Aurangzeb reported a significant increase in Roshan Digital Account (RDA) inflows, reaching nearly $300 million, up from over $200 million. This surge is attributed to strategic fund relocation in light of regional conflict, according to Aurangzeb's address at a Remittance and RDA Roadshow in London. The minister encouraged overseas Pakistanis to invest in sectors beyond real estate, such as the industrial sector, urging them to direct their funds more strategically.
He emphasized that the scheme, launched by the State Bank of Pakistan (SBP) in September 2020, will continue to thrive. Aurangzeb also highlighted improvements in economic indicators, noting that Pakistan's import cover has expanded to approximately three months, and tax revenues have risen by 40% over the past two years, driven by enforcement, digitalization, and technology.
The RDA scheme, aimed at providing digital banking services to Non-Resident Pakistanis, has seen inflows totaling $13.9 billion by the end of August 2026. While praised for its innovation and formalization of remittance channels, the RDA has also faced criticism for potentially leading to a "liability-driven dollarism," where significant inflows are repatriated or consumed domestically, with limited contribution to foreign exchange reserves or long-term investments.
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