For years, Pakistanis living abroad who wanted to invest back home faced a long list of problems like paperwork that had to be done in person, slow bank procedures and unclear rules for sending money in and out. The Roshan Digital Account (RDA) was designed to fix this. With one online bank account, overseas Pakistanis can now invest in the Pakistan Stock Exchange (PSX) without visiting Pakistan.
This guide explains what the Roshan Digital Account is, who can use it, how Roshan Equity Investment works and the exact steps to start trading shares from wherever you live.
What is the Roshan Digital Account?
The Roshan Digital Account is an initiative of the State Bank of Pakistan (SBP). It allows non residents and overseas Pakistanis to open a bank account with an SBP designated Pakistani bank remotely, through a fully digital process. You apply online or through the bank’s app, upload scanned documents and complete verification without going to a branch.
Once your account is open, you can use it to:
- Invest in shares listed on the PSX through Roshan Equity Investment
- Buy government securities, including sukuk and bonds
- Place money in bank fixed deposits
- Buy Naya Pakistan Certificates
- Send money to family or invest in other schemes offered through the programme
Available investment options can change, so check with your bank for the latest list.
What is Roshan Equity Investment?
The portion of the programme that allows you to make trades of PSX shares via your RDA is referred to as Roshan Equity Investment (REI). It has been developed by SBP in collaboration with the PSX, Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), brokerage firms and banks providing RDA.
The REI organizes a trading account with a broker of your choice and an electronic shares holding account with a CDC depository. The programme provides option to conventional stocks and Shariah compliant stocks and you can withdraw your profits, as per the rules in effect.
Who can open a Roshan Digital Account?
The account is meant for non resident Pakistanis. In general, this includes Pakistani citizens living abroad, people of Pakistani origin and holders of documents such as a NICOP or Pakistan Origin Card, depending on the bank’s rules. Each bank has its own checklist, so confirm your eligibility with the bank before applying.
Why overseas Pakistanis choose RDA for investing
- Fully digital: Open the account and manage it online from anywhere.
- Direct access to the PSX: Invest in listed companies across many sectors.
- Shariah compliant options: Choose from Islamic stocks if you prefer.
- Money can move in and out: The programme is designed so that funds can be brought into Pakistan and profits repatriated, under SBP rules.
- Many investments in one place: Shares, government securities, deposits and certificates are available through the same RDA.
- Regulated process: The programme runs under SBP’s framework and the brokers involved are licensed by the SECP.
How to invest in the PSX through a Roshan Digital Account: step by step
Step 1: Open a Roshan Digital Account
Visit the website or app of any bank that offers RDA, complete the digital application form and upload your documents. Banks typically ask for a valid passport or national ID, proof of your overseas address and details of your employment or income. Exact requirements differ by bank, so follow the checklist your chosen bank gives you.
Step 2: Give your consent to share your details
After your RDA is active, log in to your bank’s portal and agree to the terms that allow the bank to share your RDA details with the selected broker, the CDC and other capital market entities. This is what lets them open your trading and depository accounts without asking you to submit the same documents again.
Step 3: Choose your broker
Select a licensed broker from the list of brokerage houses integrated with the CDC for Roshan Equity Investment. Compare brokers on:
- Commission and charges
- Quality of the trading app and platform
- Customer support, including support that works in your time zone
- Research and market information
- Reputation and regulatory standing
You can see Pine Capital’s trading platforms and services on our website before you decide.
Step 4: Your Roshan Equity Investment account is opened
Once you choose the broker, your trading account with the broker and your CDC depository account are opened for you. The broker also runs its own checks and may ask for extra information or documents, so respond quickly to speed things up.
Step 5: Add funds
Transfer money from your RDA to your Roshan Equity Investment account through your bank’s portal. The funds go to a CDC bank account maintained with your bank, and you can then use them to buy shares. Your broker’s commission is paid by the CDC from the cash you transfer.
Step 6: Receive your login and start trading
Your broker sends you login details for the trading app or platform. Once the funds are available, you can place buy and sell orders for PSX listed shares from your phone or computer.
What to know before you buy your first share
Investing from abroad uses the same market as everyone else, so the basics still apply.
- Do your research. Look at a company’s profits, debt, dividend history and announcements, not just its recent price movement.
- Start small. Begin with an amount you can afford to leave invested and increase it as you learn.
- Diversify. Spread your money across companies and sectors.
- Think about currency. Your money is converted into Pakistani rupees to invest and shares are priced in rupees. Changes in the rupee’s value against your home currency affect your returns when you convert back.
- Plan your exit. Understand how profits and sale proceeds are transferred out through your RDA before you invest.
- Mind the time difference. The PSX trades during Pakistani daytime hours on weekdays, so use limit orders if you cannot watch the market.
If you are new to buying shares, read our guide on How to Open a PSX Trading Account Online in Pakistan (Step-by-Step Guide) to understand the basic terms, such as CDC accounts and UINs.
Costs and taxes
Every investment has costs and you should ask for the full schedule before you start. These usually include:
• Your broker’s brokerage commission
• Bank charges linked to your RDA
• CDC and settlement charges
• Taxes on dividends and capital gains under Pakistani law
Tax rules depend on your situation and can change and you may also have tax obligations in the country where you live. Speak to a tax adviser in both countries if you are unsure.
Risks to understand
Investing in shares always carries risk. Prices can fall as well as rise, and you can lose part or all of your money. For overseas investors, extra points to consider include currency movement, differences in time zone and rule changes by regulators that can affect how money is moved. Never invest money you may need soon.
Roshan Digital Account vs a regular PSX account
| Roshan Equity Investment | Regular local PSX account | |
| Who it is for | Non resident and overseas Pakistanis | Residents of Pakistan |
| How you start | Open an RDA with a bank, then link a broker | Open directly with a broker, with CDC account and UIN |
| Where you apply | Online from abroad | Online or in person in Pakistan |
| How you fund it | Transfer from your RDA to your REI account | Bank transfer from your Pakistani bank account |
| Profit transfer abroad | Designed to allow repatriation under SBP rules | Not applicable |
Frequently asked Questions
Can overseas Pakistanis invest in PSX shares through a Roshan Digital Account?
Yes. Non-resident Pakistanis can invest in PSX-listed shares through a Roshan Digital Account using the Roshan Equity Investment facility.
Do I need to visit Pakistan to open the account?
No. The Roshan Digital Account is opened online, and the broker and CDC accounts are set up remotely using the details you share through your bank.
Can I invest in Shariah-compliant stocks?
Yes. You can choose between conventional and Shariah-compliant stocks listed on the PSX.
Can I send my profits back abroad?
The programme is designed to allow repatriation of profits and funds, subject to SBP regulations and the conversion process. Ask your bank for the current procedure.
Which documents do I need?
Requirements differ by bank, but they usually include a valid ID or passport, proof of address abroad and income details. The broker may ask for additional information during its checks.
Can I invest in anything besides shares through an RDA?
Yes. Depending on what your bank offers, you can also invest in government securities, fixed deposits and certificates such as Naya Pakistan Certificates. Our blog on government sukuk explains one of these options.
How is the broker paid?
Brokerage commissions and applicable bank, CDC and settlement charges depend on the relevant service providers and their current fee schedules. Always confirm the charges with your selected broker and RDA bank before investing.
Is investing through an RDA safe?
The programme is regulated, and licensed brokers and the CDC are involved. However, share prices can still fall, and you can lose money. Research your investments and only use funds you can afford to put at risk.
Start investing from abroad with Pine Capital Management
Pine Capital Management (Pvt.) Ltd. is a licensed brokerage house based in ISE Towers, Blue Area, Islamabad, helping investors trade on the PSX through digital platforms. If you hold a Roshan Digital Account and want to invest in Pakistani shares, open your account online or contact our team to ask about Roshan Equity Investment and how to get started.
Risk disclosure: Investing in shares involves risk, including the possible loss of capital, and currency movements can affect the value of your returns. Past performance does not guarantee future results. This article is for general information only and is not investment, tax or legal advice.
