ISLAMABAD: The Finance Division has directed the Central Directorate of National Savings (CDNS) to launch digital prize bonds, replacing the discontinued bearer prize bonds.
The initiative is significant for its paperless nature, reducing printing and logistics costs, while filling the gap left by the discontinuation of paper-based bonds and providing a more secure, cost-effective alternative.
The digital prize bonds will be paperless, eliminating expenses related to printing and logistics. These bonds will be registered under the purchaser’s name, reducing the risk of theft, damage, or loss.
This step is intended to improve transparency and accountability in the economy.
The new digital prize bonds will simplify the process of purchasing and selling. According to a summary from the Finance Ministry, digital prize bonds in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000 will be issued.
These denominations will be updated periodically by the Finance Division.
Adult Pakistani citizens can purchase digital prize bonds through the National Savings Mobile App or other channels approved by CDNS. Payments will be made through a linked bank account or CDNS savings account.
The digital bonds will be redeemed through the mobile app, and the prize money will be credited directly into the linked bank or CDNS savings account used for the purchase. Draws for the digital prize bonds will occur quarterly or as per notifications by the Finance Division.
The draw schedule will be announced annually by CDNS at the start of each calendar year.
The prize amount will be taxable, though exempt from Zakat, and the amount for each denomination will be determined by the Finance Division. Purchasers will also be able to make nominations at the time of purchase, which can be changed or cancelled in the future.
In the event of the investor’s death, the principal amount and prize money will be paid to the legal heirs based on a succession certificate. If the amount does not exceed Rs500,000, the payment will be made to the nominee specified at the time of purchase.
