Islamic banking industry grows under GDR

ISLAMABAD – More than half of the $5 billion Roshan Digital Account (RDA) inflows over the past two years came from Islamic bank accounts, showing the thriving growth of the Islamic banking sector in Pakistan.

The RDA received over $5 billion through 456,732 overseas Pakistani accounts from 175 countries within two years of its launch. SBP Deputy Governor Dr. Murtaza Syed said more than half of Roshan’s digital accounts were opened in Islamic banks and 50% of the $3.18 billion investment was made in Islamic banks. Islamic certificates Naya Pakistan. RDA was launched by SBP in September 2020. The program quickly became popular among overseas Pakistanis. A government-backed digital account service is offered by Pakistan’s retail banking sector to cater to the Islamic consumer finance needs of Pakistani expatriates. The program offers expats the opportunity to acquire real estate and motor vehicles in their home country while living abroad. “In recognition of overseas Pakistanis’ preference for the Islamic version of Roshan Digital Accounts, SBP hopes that more of the nine million expatriate Pakistanis will take advantage of RDA and its various features in the future,” said Dr. Murtaza Syed. Dr Murtaza Syed said the RDA had gained global recognition as sister country Turkey worked with the SBP team to implement its own version of the program. The SBP plans to improve the menu of services under the program. The central bank wants to introduce insurance products, Takaful, pension schemes and services for non-resident Pakistanis, who own more than 50% of local entities, to open their accounts in local currencies as well as foreign currencies . It is difficult for Pakistanis living abroad to find Islamic products to invest in foreign countries, even though there are a limited number of options.

According to Meezan Bank Chairman, Irfan Siddiqui, RDA offers attractive Sharia-based profit rates.

Michael J. Birnbaum