Roshan Digital Account: Complete Guide for Overseas Pakistanis

An RDA is a special bank account for non-resident Pakistanis (NRPs) and Pakistan Origin Card (POC) holders. It allows you to: - Open a Pakistani bank account entirely online from abroad - Invest in PSX-listed stocks and mutual funds - Buy Naya Pakistan Certificates (NPCs) with attractive returns - Repatriate funds freely (no restrictions on taking money out) - Pay bills and send remittances to family

As of 2024, 15+ banks offer the Roshan Digital Account. The most popular options: | Bank | NPC Rate (USD) | App Quality | PSX Access | Best For | |------|----------------|-------------|------------|----------| | Meezan Bank | 7-10% | Good | Yes | Islamic banking | | HBL | 7-10% | Good | Yes | Full service | | UBL | 7-10% | Good | Yes | Easy onboarding | | MCB | 7-10% | Good | Yes | Investment options | | Bank Alfalah | 7-10% | Good | Yes | Mobile app | | Standard Chartered | 7-10% | Excellent | Yes | Premium service | **Our recommendation:** Meezan Bank for Islamic banking, HBL for full service, UBL for easiest onboarding.

### Step 1: Choose Your Bank Visit the bank's RDA portal and select account type: - **Ordinary RDA:** For NRPs with Pakistan CNIC/NICOP - **NRP Foreign Currency RDA:** For foreign nationals of Pakistani origin ### Step 2: Online Application Fill in: - Personal details (name, CNIC/NICOP, date of birth) - Contact information (email, phone, foreign address) - Employment details - Source of funds - Tax residency information ### Step 3: Upload Documents - Valid CNIC/NICOP or Pakistan Origin Card - Passport (bio page) - Proof of foreign address (utility bill, bank statement) - Proof of income/employment ### Step 4: Fund Your Account Transfer funds via: - Wire transfer from your foreign bank - Debit/credit card (some banks) - Existing Pakistani bank account (if applicable) ### Step 5: Start Investing Once funded, you can: - Buy Naya Pakistan Certificates - Invest in PSX stocks (through CDC sub-account) - Invest in mutual funds - Earn profit on savings **Total time:** 3-7 business days from application to fully funded account.

NPCs are the most popular RDA investment. They are government-backed debt instruments with attractive profit rates: ### NPC Rates (Indicative, June 2024) | Tenor | USD Rate | PKR Rate | |-------|----------|----------| | 3 months | 7.00% | 16.00% | | 6 months | 7.50% | 16.50% | | 1 year | 7.99% | 17.00% | | 2 years | 8.50% | 17.50% | | 3 years | 9.00% | 18.00% | | 5 years | 9.50% | 18.50% | **Key features:** - Profit paid monthly - Principal fully repatriable - Can be encashed before maturity (with adjustment) - Available in USD and PKR **Risk:** NPCs are denominated in PKR (even the "USD" ones convert to PKR). PKR depreciation can erode USD returns.

### Setting Up CDC Account 1. Open a CDC Investor Account through your RDA bank 2. Link to a PSX broker (AKD, Arif Habib, Insight Securities, etc.) 3. Fund your CDC account from your RDA ### Tax on PSX Investments - **Capital gains:** 15% for filers, 30% for non-filers - **Dividends:** 15% for filers, 30% for non-filers - **Important:** File your tax return in Pakistan to access the lower filer rates ### Best PSX Stocks for RDA Investors See our detailed guide: [Understanding PSX for Overseas Investors](/blog/understanding-psx-overseas)

### In Pakistan - RDA profits are subject to withholding tax (already deducted by the bank) - Capital gains on PSX are taxed at source - You must file a Pakistani tax return if your total income exceeds the threshold ### In Your Country of Residence - **UK:** Declare RDA profits on your Self Assessment (foreign income) - **USA:** Report on FBAR and Form 8938 if thresholds are met - **UAE:** No income tax on RDA profits - **Canada:** Declare on your T1 return (foreign income) **Important:** Double taxation treaties between Pakistan and most countries prevent you from being taxed twice. Consult a tax advisor in your country of residence.

**Can I withdraw money from my RDA anytime?** Yes. RDA funds are fully repatriable. You can transfer money back to your foreign bank account at any time. **Is the RDA safe?** RDA accounts are held with SBP-licensed banks and are covered by the Pakistan Deposit Insurance Corporation (PDIC) up to PKR 500,000 per depositor per bank. **Can I have RDAs with multiple banks?** Yes. There is no restriction on having RDAs with multiple banks. **What happens if I move back to Pakistan?** Your RDA converts to a regular account. You should inform your bank of your change in residency status. --- **Explore PSX stocks:** [PSX Dashboard →](/psx) **Related guide:** [Understanding PSX for Overseas Investors →](/blog/understanding-psx-overseas)