Sending money to Pakistan in a bank account for roughly 86 percent of Pakistan’s secondary income balance, emphasizing their importance for the country’s overall foreign exchange reserves. Pakistan received USD 21 billion in remittances between 2020 and 2021, nearly equaling the country’s total export bill. It is worth noting that the assistance given by remittances has aided the economy by reducing the current account deficit. According to a statement released by the State Bank of Pakistan (SBP), remittances increased to 2.7 billion US dollars in March 2021, which was higher than February and 43 percent higher than March 2020.
Remittances totaled $21.5 billion from July to March in FY21, up 26 percent from the same timeframe in FY20. Pakistan received $207.33 million from Countries in Europe, while Malaysia sent $16.8 million. Pakistan also received $46.7 million from Australia, $39 million from Canada, and $7 million from Japan. The monthly total of money transfers rose to $2.4 billion in FY21 from $1.9 billion the previous fiscal year, according to the release.
What Is Digital Account For Diaspora And How Does It Work?
The State Bank of Pakistan (SBP), Pakistan’s central bank, has launched a cutting-edge digital account system that will help millions of Pakistanis living, working overseas, and transfer money to Pakistan online. According to SBP Governor Dr Reza Baqir, the Roshan Digital Account (RDA) scheme is a blessing for the estimated 7 million to 9 million Pakistanis living abroad.
On September 10, 2020, Pakistan’s Prime Minister officially launched the Roshan Digital Account. Roshan Digital Account is a major initiative of the State Bank of Pakistan (SBP), which is being implemented in partnership with the Pakistani banking industry. Millions of Non-Resident Pakistanis (NRPs) seeking to conduct banking, send money to Pakistan online, and investment activities in Pakistan would be able to do so through these accounts. There is no need to visit a bank branch to open an account because the process is entirely automated and online. It should not take more than two working days for activation. The Roshan Digital Account will link Pakistan’s diaspora to the country’s banking and payment systems by:
- All traditional account services, such as money transfers to Pakistan, bill and fee transfers, and e-commerce, are now available digitally.
- It is facilitating investment in Naya Pakistan Certificates (NPCs), which will be issued by the Pakistani government at very competitive risk-free rates very soon.
- Investing in Pakistan’s stock market is now possible.
- The Pakistani property market will be opening up investment opportunities in the near future, including commercial and residential real estate.