Digital Prize Bonds
ISLAMABAD: In an effort to strengthen the documentation of the country’s economy, the Finance Division has directed the Central Directorate of National Savings (CDNS) to introduce digital prize bonds.
This initiative aims to fill the gap left by the discontinuation of bearer prize bonds and enhance transparency within the financial system. The introduction of digital prize bonds aligns with the government’s broader objective of improving financial accountability and reducing the risks associated with physical bonds.
Unlike traditional paper-based bonds, digital prize bonds will be completely paperless, eliminating the need for printing and logistics, thereby reducing operational costs.
Additionally, they will be registered under the purchaser’s name, reducing the risk of theft, loss, or damage. The digital format will also simplify transactions, making it easier for users to buy and sell bonds through streamlined digital processes.
According to official documents and a summary prepared by the Finance Ministry for approval, the digital prize bonds will initially be available in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000.
The Finance Division will notify any additional denominations in the future as per government policies. These bonds will be accessible to adult Pakistani citizens and can be purchased via the National Savings Mobile App or other platforms approved by CDNS.
The purchase process will require payment through a linked bank account or a CDNS savings account. Redemption of the digital prize bonds will be processed through the same mobile application, with the funds being credited to the purchaser’s linked bank account or savings account. This digital transformation is expected to facilitate secure and efficient management of transactions while ensuring full transparency in financial dealings.
The Finance Division has also determined that draws for digital prize bonds will be held on a quarterly basis, with the schedule being announced by CDNS at the start of each calendar year.
The prize money will be transferred directly into the winners’ linked bank accounts or CDNS savings accounts. While the prize amount will be subject to taxation, it will remain exempt from Zakat deductions.
The policy also allows the bond purchaser to nominate a beneficiary at the time of purchase, with the option to modify or cancel the nomination in the future.
In case of the investor’s death, the principal amount and any prize money associated with the bond will be disbursed to legal heirs upon presentation of a succession certificate. If the total payable amount is Rs500,000 or less, it will be directly transferred to the nominee specified at the time of purchase.
The introduction of digital prize bonds is a significant step towards modernizing Pakistan’s financial landscape. By leveraging technology, the government aims to encourage financial inclusion, reduce the circulation of undocumented money, and ensure greater security for investors.
This initiative is expected to enhance trust in the prize bond system and promote a more accountable economic framework.
