Remittance inflows contribute significantly to the country’s economic well-being and alleviation of poverty. It also enhances the social conditions and acts as an investment catalyst in the country, advancing growth-promoting production, exports, consumption, and income. Considering the importance of foreign remittances, the current government is trying to facilitate overseas Pakistanis.
To increase the inflow of remittances in Pakistan, the State Bank of Pakistan has launched the Roshan Digital Account (RDA). It is a banking facility that allows the Pakistani diaspora to access banking facilities within Pakistan without visiting a consulate or embassy. It focuses on providing account and banking solutions to the 11 million overseas Pakistanis living in different countries. It has a diverse portfolio that serves the Pakistani diaspora particularly. Nearly 0.3 million overseas Pakistani residents have opened RDAs (Dawn,2021). Through RDA, overseas residents have sent record high remittances of $29.4 billion in FY21. The inflow of RDA remittances increased to $3.92 billion in March 2022 (Express Tribune, 2022). The rise in remittances through RDA can help Pakistan diversify its sources of foreign exchange and reduce the current account deficit burden on the economy.
Recently, the government has taken an initiative to eliminate 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 can expand foreign remittances in the country.
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