SBP’s Withdrawal of Rs. 40,000 Prize Bond Causes Panic Among Public

The State Bank of Pakistan’s (SBP) decision to withdraw all the prize bonds worth Rs. 40,000 is freaking out the general public.

While the expiry date of the bond ends in March next year, panic among the masses is already prevailing as a large number of bondholders are approaching the office of the central bank to encash their bonds.

There, they face another shocker from the SBP when the bank officers inform them that these bonds cannot be encashed or redeemed– but can only be transferred to their bank accounts or converted to into Premium Prize Bonds, Special Saving Certificate or Defence Saving Certificates.


Rs. 40.000 Prize Bonds Can No Longer be Sold: SBP

The sudden shift in government’s policy is to tighten the noose on black money and to comply with the Financial Action Task Force’s (FATF) recommended action plan to curb the money laundering and terror financing.

However, a citizen, Iqtidar Shah, said the government’s decision to control the black money has put common people in trouble.

“While the black money holders can easily encash their bonds through agents of the prize bond dealers. They are paying Rs. 38,000 for each bond of Rs. 40,000 denomination.”


Govt Gives a 9-Month Deadline to Register Rs. 40,000 Prize Bonds

Another bondholder, Nousheen Rashid, said she heard on a news channel that the government was withdrawing Rs. 40,000 prize bond. She had three of them.

“I hardly slept that night and very early in the next morning, I decided to encash my bond. When I reached the state bank’s office, I saw long queues of bondholders there. On my turn, which came after waiting for a few hours, the bank official told me that I could either convert them into Premium Prize Bonds, Special Saving Certificate or Defence Saving Certificates or transfer cash into my bank account. So, I accepted the first option.”

The rumor has it that the government is also considering canceling the currency note of Rs. 5,000.

    • no this is not how you dollarize an economy but this is how you bring people into tax net as same denomination worth of prize bond are available which you have to register with government on your name

  • I think Govt should block the option of private purchaser dealers otherwise big crocadiles will run away by selling on lowest price to these private middle men. FBR should take strict actions against those who are not paying income tax and theu act like middle man such as private bond purchasers, plots seller, small home constructors business at boom in Lahore and also in Karachi purchase 500 yard old house split in 4s or 6s apartment and no tax on income, butchers, middleman of fruits and sabzi market, all those doing business of some of the building construction material sands and bricks and etc. Also take benefits other than salary from Govt officers both provincial and Federal. Please increase tax net but do not squeeze further salaried class or those industrialist who are already paying. Also take tax from landlords on agriculture but do not touch till 10 acrs small agriculture persons.

  • Is government stopped also draw of premium prize bond till dead line March 2020?

  • Nice transferring money into your account and still crying. Having registered accounts mean no black money laundering and increase ta net but Well patwari will be patwari always…. Donkey can understand better….

  • Govt after govts enforce psychological tools of foreign donor agencies how to tease to divert attention of the people from cruel policies by engaging them in such like activities. Through this tool of policy, Govt provided opportunity to Black Marketeers/ money launders / currency dealers to loot common man with connivance of Private Banks by purchasing prize bonds at low price. The govt shall hang those policy makers who give suggestions to the then govts to issue such bonds/ high value currency notes against sovereign guarantee and not to punish common man with additional troubles of high inflation by that, govt lost confidence of small business men and deprived poor to eat/ earn through legal ways n means.

  • Well go ahead . discontinue currency notes of 1000/5000 and make new with expiry put all money in banking this only solution. Mafia of Pakistan withdrawn money from market thats is why many issues .

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