"Capital Smart City: Another master piece from the Capital Smart City launched one of its kind innovative & futuristic development - One Capital Residence." " "Nova City Islamabad has announced Nova City World - Overseas Block for its valuable customers. This state-of-the-art complex will offer luxurious modern amenities. " "Smart City has signed a MoU with Surbana Jorung. This will boast the position of Silicon Valley. " " Surbana Jorung will also design Cultural Village and some other miscellaneous projects" "RUDN Enclave: Development work in RUDN Enclave is on full swing. FWO also started construction of proposed Rawalpindi Ring Road." "Lahore Smart City’s new partnership with Galeria Designs, Raees Fahim, and Faisal Rasul. The future looks bright for Signature Villas!" "Dr Daniel been assigned the task of designing One Capital Residences would surely give birth to an aesthetic giant amidst the twin cities." "Alhamdolillah, with the grace of almighty Allah 2xHybird Double Decker Busses reached safely at Capital Smart City." "Capital Smart City has taken a pivotal step towards water filtration. This the filtration plant of capacity 4.5 Million Gallons per Day (MGD)."
December 29, 2021
Overseas Pakistanis Provided

Overseas Pakistanis Provided Vital Support For Pakistan’s Economy In 2021

KARACHI: Overseas Pakistanis provided vital support for Pakistan’s economy in 2021 as they invested a significant amount of $2.9 billion in different assets through the Roshan Digital Account (RDA) over the past 14 months, which bolstered the foreign exchange reserves.

Besides, the RDA inflows aided in offsetting the negative impact of foreign divestment of around $3.5 billion from the rupee-denominated government debt securities like treasury bills and Pakistan Investment Bonds (PIBs) in the aftermath of the Covid-19 pandemic.

RDA inflows also contributed to stabilizing the Pakistani rupee against the US dollar and other foreign currencies. “Pakistani diaspora is projected to inject an additional $2 billion in the remaining seven months (December-June) of the ongoing fiscal year 2021-22,” remarked Arif Habib Limited (AHL) economist Sana Tawfik while talking to The Express Tribune.

RDA receipts are different from the remittances sent by the non-resident Pakistanis (NRPs) to their family members and friends back home. The inflow of remittances remained larger than export earnings in 2021. Remittances are used to partially finance import payments and repay foreign debt.

Overseas Pakistanis sent record high remittances of $29.4 billion in the fiscal year 2020-21. They are estimated to inflate further to an all-time high of $31.8 billion by the end of the current fiscal year in June 2022, according to the research house.

Turning to the RDA, Tawfik said “we expect total inflows of over $3 billion in FY22.” So far, overseas Pakistanis have invested a total of $2.9 billion since the launch of the scheme by the central bank in September 2020. Data breakdown suggests that they have invested $1.35 billion in the first five months (July-November) of the ongoing fiscal year.

The non-resident Pakistanis have poured a significant amount through the RDA into the Naya Pakistan Saving Certificates, which “offer lucrative returns on investment of 5-7% per annum in foreign currencies,” she said.

Pakistan has offered attractive returns on the certificates to the non-resident Pakistanis at a time when the rest of the world (especially the developed countries) is offering a nominal return of around 0.25%.

Investments made under the RDA are unlikely to be pulled out aggressively as opposed to the foreign divestment from the rupee-denominated T-bills and PIBs after the Covid-19 outbreak. Investors prematurely sold the government debt securities to keep cash in hand during the pandemic and their investment was also facing the risk of rupee depreciation at that time.

Leave a Comment

Your email address will not be published.