There are almost 9 million Pakistanis residing abroad, and many of them have financial links to their homeland. They have struggled in the past to successfully move money into Pakistan, withdraw money out of Pakistan, and handle their tax obligations.
A lot of these issues have been addressed with the launch of the Roshan Digital Account (“RDA”). As an overseas Pakistani, we’ll show you how to invest, purchase a property, acquire vehicle financing, and create a bank account in this post.
What is Roshan Digital Pakistan?
The RDA is a government-backed program that encourages Pakistanis living abroad to deposit and invest their money in the country. The initiative is designed to allow money to come into Pakistan and then be channeled into long-term investments, ensuring that the money stays in Pakistan. With $1.9 billion invested in Pakistan through 200,000 RDA accounts, the initiative appears to be off to a strong start.
Banks which are accessible for RDA
Bank Alfalah, Bank Habib
Punjab Bank, MCB Bank Habib Metro Bank
Bank Meezan, slamic Bank of Dubai
Bank Samba, Standard Chartered, HBL, UBL and Faysal Bank
Only a few of these banks provide the RDA in an Islamic format. Meezan Bank is now Pakistan’s most famous Islamic bank.
Naya Pakistan Certificate
Naya Pakistan certificates are financial items you may have heard of. The government has also produced Naya Pakistan Certificates as part of the RDA scheme, which give highly attractive yearly returns. RDA account holders have access to these. These certificates are available in PKR, GBP, EUR, and USD, making them appealing to people concerned about Pakistani inflation. Of course, the rates differ between the three varieties, with the PKR version being the highest.
How can Roshan Digital Account be beneficial for you?
With an RDA, you may accomplish a variety of tasks. Among the most important are
Purchase a home in Pakistan.
Obtain automobile financing
Obtain a debit card that can be used in Pakistan.
Invest in Pakistan’s stock market.
Make local payments in Pakistan (using your PKR RDA account)
Invest in different insurance and wealth management products (takaful).
The money may only be released directly to the seller if you choose the house purchase option. You may then deposit the profits from that house into your RDA and repatriate them to your new home country.
Tax and legal implications
Assume you earn a profit on your Pakistani property and sell it. You will have to pay capital gains tax in Pakistan. When you repatriate the money, you’ll have to pay UK capital gains tax. However, because the two countries have a double taxation treaty (explained here), any taxes paid in Pakistan will be subtracted from the amount owed in the UK. As a consequence, you must pay tax at the greater rate of the two nations, but you will not have to pay double the tax.
Best Investment opportunities:
There are now several residential and commercial projects developing in Pakistan now. For Overseas Pakistani it is now very easy to invest here in Real Estate. Several projects like capital smart city, nova city are and many more are the best opportunity to put money into.
Nova City Overseas Block( Nova City world)
Nova City Islamabad is a new neighborhood being developed near Islamabad by Nova City Developers. The project includes an overseas block that is specifically intended for Pakistanis who have established a better standard of living and a desire for lavish facilities while living abroad. A limited number of residential and commercial plots are offered in Nova City World on a first-come, first-served basis. This is a fantastic opportunity for Pakistanis living abroad to invest in Pakistan safely and affordably.