Govt Set to Launch Digital Prize Bonds

The government is preparing to introduce digital prize bonds, a modernized investment option that will be managed through a mobile application.

These bonds will be directly credited to linked bank accounts or Central Directorate of National Savings (CDNS) accounts at the time of purchase, offering a secure and paperless alternative to traditional prize bonds.

The prize money from these bonds will be subject to taxation but will not be liable for Zakat deductions. This initiative is designed to enhance economic transparency, accountability, and documentation while reducing risks associated with theft, loss, or damage.

The shift to digital bonds is expected to significantly lower printing and logistical expenses. Since the bonds will be registered under the buyer’s name, the chances of fraud will be minimized. Additionally, the digital format will simplify the processes of purchasing, selling, and redeeming prizes, making them more efficient.

Initially, the government plans to issue digital prize bonds in denominations of Rs. 500, Rs. 1,000, Rs. 5,000, and Rs. 10,000, with the possibility of introducing additional denominations as required.

Pakistani citizens aged 18 and above will be able to purchase these bonds through the National Savings mobile app or other authorized CDNS platforms. Payments will be made via linked bank accounts or savings accounts.

Prize money will be directly transferred to the investor’s linked account, and quarterly draws will be held. The schedule for these draws will be announced at the start of each calendar year.

Investors will also have the option to nominate beneficiaries when purchasing the bonds, with the ability to update or cancel nominations later.

In the event of the investor’s death, the bond’s original value and any prize money will be transferred to the legal heirs upon presentation of a succession certificate. For amounts up to Rs. 500,000, the payment will be made to the nominated beneficiary.