Govt plans to introduce digital prize bonds

Mar 9, 2025 - 09:29
Initiative is particularly noteworthy due to paperless nature which eliminates need for expenses related to printing and logistics
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1. Initiative is particularly noteworthy due to paperless nature which eliminates need for expenses related to printing and logistics

Pakistan to Introduce Digital Prize Bonds for Transparency and Efficiency

ISLAMABAD: The Finance Division has directed the Central Directorate of National Savings (CDNS) to introduce digital prize bonds, filling the gap left by the discontinuation of bearer prize bonds.

This paperless initiative aims to reduce costs associated with printing and logistics while enhancing security. Unlike traditional prize bonds, digital prize bonds are registered under the purchaser’s name, eliminating risks of theft, damage, or loss.

The move is seen as a major step toward economic documentation, increasing transparency and accountability. Additionally, it will streamline the process of purchasing and redeeming bonds, making transactions more efficient.

According to a finance ministry summary prepared for approval, the initial denominations of digital prize bonds will be Rs500, Rs1,000, Rs5,000, and Rs10,000, with further denominations to be notified by the Finance Division as needed.

How It Works:

  • Any adult Pakistani citizen can purchase digital prize bonds via the National Savings Mobile App or other CDNS-approved channels.
  • Payments must be made through a linked bank account or CDNS savings account.
  • Redemption will be processed via the mobile app, with funds credited to the same linked account used for the purchase.

Prize Draws & Taxation:

  • Draws will be held quarterly or as per the Finance Division’s notifications.
  • The schedule will be announced by CDNS at the start of each calendar year.
  • Prize money will be credited directly to the purchaser’s linked bank or CDNS savings account.
  • Prize earnings will be subject to taxation but exempt from Zakat.

Nomination & Succession:

  • Buyers can nominate a beneficiary at the time of purchase, with the option to modify or cancel the nomination later.
  • In the event of the bondholder’s death, the principal amount and prize money will be transferred to legal heirs as per the succession certificate. If the net amount does not exceed Rs500,000, payment will be made directly to the nominee.

This transition to digital prize bonds marks a significant step toward financial modernization, offering a secure and transparent investment avenue for Pakistani citizens.