The deposit inflow through the Roshan Digital Account reached $1.87 billion at the end of July, making the first month of the current fiscal year the second-highest since the RDA’s launch in September last year.
According to data released by the State Bank of Pakistan (SBP) on Thursday, the country received $307 million in July, compared to $310 million in June, indicating a trend of inflows of more than $300 million per month.
The SBP implemented the RDA in September 2020 for non-resident Pakistanis to enable them to open bank accounts in Pakistan remotely through online digital portals without physically visiting branches.
In September 2020, the RDA inflow was only $7 million. However, it began to rise and reached $1.87 billion by the end of July.
SBP Governor Dr. Reza Baqir stated last month that the RDA initiative for overseas Pakistanis has generated new financial inflows of $1.8 billion, which has helped boost the country’s foreign exchange reserves since September 2020.
The country’s image in the international market improved as its foreign exchange reserves increased to $17.85 billion by the end of July. Pakistan raised an additional $1 billion in July through a tap issuance of its Eurobond, which had previously raised $2.5 billion.
According to the State Bank, Pakistan’s external position is at its strongest in some years. In line with SBP predictions in March, the current account deficit reduced to 0.6% of GDP. The SBP governor stated that this was the lowest current account deficit in ten years, thanks to all-time high exports and remittances.
He also stated that, unlike previous economic upheavals in Pakistan, the current economic recovery would be supported by external stability.
Despite greater inflows including record remittances, stronger exports, and RDA inflows, the local currency has devalued by 7% versus the US dollar over the last two months.