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 of the conflict situation, people are doing their strategic relocations, and as part of those strategic relocations, where we used to get whatever $200 million-plus in terms of our RDA inflows, those have consistently been close to $300 million,” said Aurangzeb.

He encouraged overseas Pakistanis to explore investment opportunities beyond real estate, including the industrial sector. “Now what we have to try to do is not let it just go into real estate or the Naya Pakistan Certificate.”

“So, now it’s not a question of inflows back into Pakistan, but where this is being directed and invested. So, I am very clear that this scheme will continue to go from strength to strength,” he said.

Talking about economic indicators, the minister noted that the country’s import cover has improved to roughly three months, reaching a significant point in terms of foreign exchange reserves.

Emphasising the need for trust and credibility in the Federal Board of Revenue (FBR), the minister highlighted that tax revenues have grown by 40% over the last two years. He stressed that this growth is driven by enforcement, digitalisation, and technology rather than new taxes.

The RDA is an initiative launched by the State Bank of Pakistan (SBP) in September 2020, in collaboration with commercial banks operating in Pakistan. Its primary purpose is to provide innovative banking solutions to Non-Resident Pakistanis (NRPs), including Non-Resident Pakistan Origin Card (POC) holders, allowing them to remotely open an account in Pakistan through an entirely digital and online process without needing to visit a bank branch.

Inflows through RDA reached $13.9 billion by the end of August 2026, the SBP said on Friday.

While RDA has been praised for its digital innovation and for formalising remittance channels, it has also been critiqued for creating a “liability-driven dollarism,” where a significant portion of inflows are either repatriated or consumed domestically, with a smaller percentage contributing to durable foreign exchange reserves or long-term productive investments.