The Pakistani government has announced the introduction of digital prize bonds, aimed at enhancing transparency, improving financial documentation, and eliminating the risks associated with physical bonds.
According to official documents and a summary prepared by the Ministry of Finance, these digital prize bonds will be available in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000. The bonds will be purchased and redeemed via a mobile application linked to the buyer’s bank or savings account with the Directorate of National Savings (CDNS).
Unlike traditional prize bonds, the digital version will be registered in the name of the purchaser, significantly reducing the risk of theft, loss, or misuse. Officials believe this shift will also curb the use of prize bonds for undocumented transactions, contributing to enhanced financial accountability.
Paperless Transactions and Cost Reduction
This initiative is expected to reduce administrative costs related to printing and logistics while making the process more accessible for investors. A senior finance ministry official told Dawn that the shift to digital bonds aligns with the government’s broader strategy to digitize financial services and integrate informal transactions into the formal economy.
“The move to digital prize bonds will ensure traceable and secure transactions, marking a major step toward improving financial transparency,” the official added.
How It Will Work
Under the new system, adult Pakistani citizens can purchase digital bonds through the National Savings Mobile App or any other authorized channel by CDNS. Payments will be made via the buyer’s linked bank or CDNS savings account.
Tax Implications and Prize Draws
Prize money for digital bonds will be taxable, but exempt from Zakat deductions. The Ministry of Finance will announce prize amounts for each draw, which will occur quarterly or as determined by the government. The CDNS will publish the draw schedule at the beginning of each calendar year, with winnings being directly credited to the buyer’s linked bank or savings account.
Beneficiary Nomination and Inheritance Process
At the time of purchase, buyers can nominate a beneficiary. In the event of the investor’s death, the principal amount and any winnings will be transferred to the legal heirs upon submission of a succession certificate. If the total claim is below Rs500,000, the nominee specified at the time of purchase will receive the payment directly.
The government believes that this digital initiative will modernize the prize bond system, facilitate better documentation of financial transactions, and strengthen efforts to combat illicit financial flows.
