The Finance Division has announced new rules for the launch of digital prize bonds, aiming to improve economic documentation, transparency, and accountability. Under the new regulations, digital prize bonds will be transacted via a mobile application, with winnings credited directly to linked bank accounts or Central Directorate of National Savings (CDNS) accounts upon purchase.
The updated system allows for unlimited investment in digital bonds, with prize money subject to taxation but exempt from Zakat. This paperless approach is expected to cut down on printing and logistical costs. Digital bonds will be registered under the buyer’s name, reducing the risk of fraud.
The new system will also streamline the process for buying, selling, and redeeming prize bonds, making the process more efficient. The initiative, which is being implemented under the Public Debt Act of 1944, aims to mitigate risks of theft, loss, or damage.
Pakistani citizens will be able to purchase digital prize bonds through the National Savings mobile app or other authorized CDNS channels, with payments made through linked bank accounts. The winnings will be directly credited to the investor’s account, with quarterly draws scheduled and announced at the start of each calendar year.
In addition, the new system allows investors to nominate beneficiaries when purchasing bonds, with the option to modify or cancel nominations. In the event of a bondholder’s death, the principal and prize money will be paid to the legal heirs, with specific guidelines for distributing the amount based on the succession certificate.
The CDNS will establish procedures for the sale, encashment, and payment of prize money, ensuring the proper execution of these rules.
