Investment in premium bonds surges 192pc: SBP

Investment into premium prize bonds of Rs40,000 denomination increased sharply by 192pc, the State Bank of Pakistan (SBP) said on Wednesday.

The SBP’s statistics showed that investment into registered or premium prize bonds surged to Rs17 billion in October 2019 compared with Rs5.8 billion in the corresponding month a year earlier.

Premium prize bonds are being issued only against computerised national identity cards with valid bank accounts.

The government has announced a biannual profit of 1.96pc to make the instrument attractive and the payout is directly transferred to the bondholders.

Around Rs232 billion was converted into either premium bonds or transferred into saving accounts or other bank accounts following the government’s initiative to discontinue prize bonds of Rs40,000 denomination to bring the money into the documented economy.

3 COMMENTS

  1. Prize bonds of smaller denominations should also be converted into premium bonds because documentation of economy is highly necessary.

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