Roshan digital account inflows fall in April

Dollar inflows through Roshan Digital Account (RDA) decreased in April over the preceding month. According to data released by the State Bank of Pakistan (SBP) on Tuesday, inflows in April were $171 million, a six per cent decline from March’s $182m. The State Bank introduced the RDA in September 2020 following an outflow of foreign investments from domestic bonds. The RDA offers up to 8pc profit on US dollar investments and is considered highly competitive internationally. The slow inflows result from import restrictions and a curb on profit repatriation to bolster the country’s reserves, creating uncertainty for investors. The looming threat of a sovereign default in June 2023 weighs on investors. Despite reaching over $9 billion with support from the IMF and friendly countries, the meagre foreign exchange reserves are ins­ufficient to restore inve­s­tor confidence in the economy.