Meeting banking needs of overseas Pakistanis

ROSHAN Digital Accounts (RDAs) are an important initiative introduced by the government for overseas Pakistanis in line with the vision of Prime Minister Imran Khan. It is a fitting tribute to the Pakistani diaspora, which has long been contributing significantly to the economic development of the country through ever-increasing remittances. Despite the pandemic and the resultant global economic slowdown, remittances are on track to break records this year.

RDAs are lifestyle banking accounts which allow overseas Pakistanis to meet all their banking and financial services needs digitally and securely. Through these accounts, our diaspora can invest in Pakistan's capital, money and debt markets and have all the facilities and investment options that are available to a bank account holder in Pakistan.

I am also pleased to share that RDAs also allow overseas Pakistanis to invest in the Naya Pakistan Certificates (NPCs) introduced by the Government of Pakistan. These certificates carry very attractive rates of return and are available in Pakistani rupee, US dollar, euro and British pound. They provide both short and long-term investment options, and come in both conventional and Shariah compliant forms to cater to the diverse investment needs of overseas Pakistanis.

The Government has also amended the tax regime to ensure that investments made through RDAs are convenient and hassle free. The profits on investments made through RDAs in NPCs, the stock market, mutual funds and real estate are subject to full and final tax with no requirement of filing tax returns. Furthermore, it has been ensured that overseas Pakistanis have full flexibility and freedom to operate their accounts and repatriate profits to their countries of residence anytime without the need for any approvals.

The response of overseas Pakistanis has been very encouraging so far, and we are optimistic that take-up will grow exponentially as more and more Pakistanis living in different jurisdictions learn about these accounts and the attractive options they provide.

The rising confidence of international investors and of overseas Pakistanis in particular in the future of our country can be attributed to the economic reforms being pursued under the vision of the Prime Minister Imran Khan.

Achieving economic stability and improving the lives of our people are the primary objectives of our reform agenda. Despite the precarious economic situation that our government inherited, we have achieved macroeconomic stability and have successfully placed our economy on the path of sustainable growth. The previously ever-widening current account deficit has been reined in, fiscal discipline restored, and the exchange rate has stabilised under the new market-based flexible exchange rate regime. Our foreign exchange reserves have increased significantly and are expected to rise further as foreign investment and remittances grow.

The State Bank of Pakistan has also introduced major changes in the foreign exchange regime to make it more investor friendly. This will facilitate capital flows and further enhance investor confidence. Major changes include permission to establish subsidiaries/branch offices abroad for promotion of exports and permission to incorporate holding companies abroad for raising capital from venture capital (VC) hubs. Incentives have also been enhanced for VCs and start-ups to advertise their ideas in investor hubs, thereby enhancing their market presence. We expect that these changes would encourage investment in fintech and tech space, which are important areas to watch in the future.

In conclusion, I would like to reiterate that Pakistan provides attractive investment and business opportunities to investors, particularly overseas Pakistanis who can benefit from the new Roshan Digital Accounts to fulfil all their banking and investment needs digitally.