Pakistan likely to ban Rs25,000 prize bond

ISLAMABAD - The federal government is likely to discontinue Rs25,000 prize bond to meet conditions of the Financial Action Task Force (FATF) to come out of its grey list. 

Local media reports say the State Bank of Pakistan (SBP) would start registration of the prize bonds from December end. 

Owners of the Rs25,000 prize bonds would also be made bound to inform the SBP before the sale of the bonds. The bonds however can be converted into premium prize bonds through registration.

The government is making efforts to document the investment in prize bonds and saving certificates. 

Earlier this year, the SBP managed to almost complete the documentation of unregistered prize bonds with Rs40,000 denomination, logging Rs256 billion worth of certificates since June 2019.