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RDA inflows rise as regional conflict prompts strategic fund relocation: Aurangzeb
By Bibi Masooma
Real Estate AnalystVerified author
4 min read
Finance Minister Muhammad Aurangzeb has said inflows through the Roshan Digital Account have climbed to nearly $300 million, up from a level that had previously run at just over $200 million, with part of the increase driven by overseas Pakistanis strategically relocating funds amid ongoing regional conflict. He made the remarks while addressing a Remittance and RDA roadshow in London, organised jointly by UBL and Meezan Bank.
Why the Jump Is Happening Now
According to Aurangzeb, part of the recent rise in RDA inflows reflects a deliberate shift by overseas Pakistanis moving money out of conflict-affected regions and into channels like the RDA as a safer or more strategic option. He framed this as a change in behaviour rather than simply organic growth, tying the timing directly to the security situation in the wider region rather than to any new incentive or policy change on Pakistan's end.
The Minister's Bigger Concern: Where the Money Actually Goes
Aurangzeb was clear that inflows alone are not the point he wants to emphasise. He urged overseas Pakistanis to look beyond real estate and beyond instruments like the Naya Pakistan Certificate, and to consider channelling their money into productive areas such as industry instead. In his framing, the real policy question facing Pakistan is no longer simply how much money flows back into the country, but how that money gets directed and invested once it arrives, and he expressed confidence that the scheme itself would keep expanding regardless.
Other Economic Indicators the Minister Highlighted
Beyond the RDA specifically, Aurangzeb pointed to broader signs of improvement in Pakistan's external position, noting that import cover has now risen to roughly three months, which he characterised as a meaningful milestone for the country's foreign exchange reserves. He also addressed tax administration, highlighting that revenue collection has grown by 40 percent over the past two years, a gain he attributed to stronger enforcement and digitalisation rather than to the introduction of new taxes, while also stressing that building trust and credibility in the Federal Board of Revenue remains important.
What the RDA Is and Why It Matters
The Roshan Digital Account was launched by the State Bank of Pakistan in September 2020, working with commercial banks, specifically to let non-resident Pakistanis and Pakistan Origin Card holders open accounts back home entirely online, without needing to visit a branch in person. Separate SBP data cited alongside this report puts cumulative RDA inflows at $13.9 billion by the end of August 2026, underlining how significant the scheme has become as a channel for money from overseas Pakistanis.
The Criticism the Scheme Still Faces
Despite its scale, the RDA has drawn criticism for what some observers describe as a pattern of "liability-driven dollarism": a structure in which a large share of the inflows either gets repatriated again or consumed domestically, with only a smaller portion translating into durable foreign exchange reserves or genuinely productive, long-term investment. This is essentially the same concern Aurangzeb himself gestured toward when he pushed overseas Pakistanis to diversify away from real estate, suggesting the government is aware of, and trying to address, this structural weakness rather than treating rising headline inflows alone as success.
What This Means Going Forward
The combination of Aurangzeb's comments points to a government that is comfortable with the RDA's inflow trajectory but increasingly focused on its composition rather than its size. Whether strategic fund relocation driven by regional conflict continues to boost inflows will likely depend on how that conflict evolves, while whether Pakistan can shift the destination of these funds toward industry and productive investment, as Aurangzeb is publicly encouraging, will be the more telling indicator of whether the scheme is addressing the dollarism critique or simply growing around it.