The government is set to launch digital prize bonds, a modern and secure investment option managed through a mobile application. This initiative aims to streamline financial transactions while reducing risks associated with traditional paper-based prize bonds.
Under the new system, digital bonds will be directly credited to the buyer’s linked bank account or Central Directorate of National Savings (CDNS) account at the time of purchase. These bonds will be registered under the buyer’s name, minimizing the chances of fraud and loss.
Key Features of Digital Prize Bonds
- Paperless & Secure: Eliminates risks of theft, damage, or misplacement.
- Automatic Prize Transfers: Winnings will be credited directly to the investor’s linked bank account.
- Taxable Prize Money: Subject to taxation but exempt from Zakat deductions.
- Lower Costs: Digital format reduces printing and logistical expenses.
- Easy Access & Management: Available through the National Savings mobile app and other authorized CDNS platforms.
Initially, digital prize bonds will be available in denominations of Rs. 500, Rs. 1,000, Rs. 5,000, and Rs. 10,000, with potential future expansions. Pakistani citizens aged 18 and above will be eligible to purchase these bonds using their bank or savings accounts.
Prize Draws & Beneficiary System
- Quarterly Draws: The government will conduct draws four times a year, with the schedule announced at the start of each calendar year.
- Beneficiary Nomination: Investors can nominate beneficiaries at the time of purchase and update or cancel nominations later.
- Inheritance Transfer: In the case of the investor’s passing, the original bond value and any prize winnings will be transferred to legal heirs upon presentation of a succession certificate. Amounts up to Rs. 500,000 will be paid directly to the nominated beneficiary.
The shift to digital prize bonds is expected to enhance financial transparency, improve documentation, and promote a cashless economy while making investment management more efficient and accessible for all Pakistanis.