State Bank enhances investment chances for the non-residents

KARACHI: The State Bank of Pakistan (SBP) has allowed non-resident Pakistanis (NRPs) to make direct investment through the rupee-based Roshan Digital Accounts (RDA) into the shares of companies in Pakistan and units of funds established and operated by private fund management company licensed by Securities and Exchange Commission of Pakistan (SECP).
The step will provide further investment and financing opportunities to non-resident Pakistanis, the State Bank of Pakistan (SBP) said on Monday.
Moreover, to facilitate investment in real estate in Pakistan, financing facilities have been allowed to RDA holders through their PKR Account using digital channels. In addition,inflow of funds into rupee denominated RDA has been allowed through Money Transfer Operators (MTOs).
Earlier investment through rupee denominated RDA was allowed in registered government securities, listed securities on the stock exchange, mutual funds, real estate with self-financing and term deposits of the banks.
The above changes will not only provide more investment opportunities to non-resident Pakistani but will also facilitate them to purchase property in Pakistan through bank financing. Likewise, earlier the flow of funds into RDA was allowed only through banking channels.
However, based on the feedback received from NRPs, inflows from abroad into RDA have been allowed through MTOs. This would provide another convenient and economical avenue for sending remittances, particularly to the NRPs who might not have a bank account abroad. – TLTP