Karachi: Remittances sent through Roshan Digital Accounts (RDA) reached $1.87 billion by the end of July, the first month of the current financial year since RDA was launched in September 2020. For the second time, they are at the highest level.
According to reports, State Bank released data showing that July received remittances of $30.07 million, with June having received $30.1 million.
It may be recalled that Roshan Digital Accounts was introduced by the State Bank of Pakistan in September 2020 for overseas Pakistanis so that they could open a digital bank account in Pakistan for sending money back and forth.
The amount of money coming through these accounts was only $7 million in September 2020, which later began to increase and reached $1.87 billion by the end of July.
SBP Governor Raza Baqir said last month the RDA initiative for overseas Pakistanis had given Pakistan a new financial inflow of $1.8 billion, which has had helped improve the country’s foreign exchange reserves.
The rise in foreign exchange reached $17.85 billion by the end of July, improving the country’s standing in the international market.
In July, Pakistan received an additional $1 billion from the issuance of Eurobonds, compared to $2.5 billion in March.
The SBP said that Pakistan’s external position is now the strongest it has been in many years.
According to the SPB’s March estimates, the current account deficit narrowed to just 0.6% of GDP.
The SBP governor said this was the lowest current account deficit in the last 10 years, helped by the highest ever exports and remittances.
He further said that unlike many previous development trends in Pakistan, the current economic recovery comes with external stability.
On the other hand, despite large inflows such as record remittances, improved exports, and inflows through RDA, the local currency has depreciated by 7% against the US dollar in the last two months.
However, the SBP governor recently said that Pakistan’s new foreign exchange reserves are expected to increase by $2.8 billion in August through the IMF’s new Global SDR.
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