The government is set to introduce digital prize bonds, a modernized and paperless investment option that will be managed through a mobile application. This initiative aims to provide a secure alternative to traditional prize bonds while enhancing transparency and efficiency in financial transactions.
The digital prize bonds will be directly credited to linked bank accounts or Central Directorate of National Savings (CDNS) accounts at the time of purchase. This new system is expected to reduce risks associated with theft, loss, or damage and promote economic documentation and accountability.
Unlike traditional prize bonds, the prize money from digital bonds will be taxable but exempt from Zakat deductions. The shift to a digital format is also expected to significantly cut printing and logistical costs. Since the bonds will be registered under the buyer’s name, the risk of fraud will be minimized. Additionally, the digital system will streamline 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 in the future.
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 conducted. The schedule for these draws will be announced at the beginning of each calendar year.
Investors will also have the option to nominate beneficiaries at the time of purchase, with the flexibility 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.
