Roshan digital account (RDA) is a banking facility provided to the non-residents of Pakistan allowing them to have access to banking facilities within Pakistan without having to visit a consulate or embassy. Overseas residents have sent record high remittances of $29.4 billion through RDA in FY21. Given this increase, the Government has estimated that the total amount of inflows will inflate further to an all-time high of $31.8 billion in FY22.
RDA was launched by the State Bank of Pakistan (SBP) in partnership with the commercial banks steering in Pakistan. It aims to provide account and banking solutions to the 11 million overseas Pakistanis living in different countries of the world. It has a diverse portfolio that caters to the Pakistani diaspora particularly. Nearly 0.3 million overseas Pakistani residents have opened RDAs so far.
Remittance inflows contribute significantly to a country’s economic well-being and alleviate poverty. It also improves the social conditions and serves as an investment catalyst in the country which influences growth-promoting production, exports, consumption, and income in return. Given the importance of foreign remittances, the current government is taking steps to facilitate overseas Pakistanis. Recently, the government has taken an initiative to abolish the condition of separate licenses to transfer funds through RDA to increase the flow of foreign investment in the country. Facilities like Roshan Digital Account and Roshan Apna Ghar scheme are also contributing to the efforts to expand foreign remittances.
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