ISLAMABAD – The government of Pakistan has decided to introduce digital prize bonds, which will be fully managed through online application. This new initiative aims to modernise the prize bond system by ending the need for physical bonds and reducing associated risks such as theft, loss, or damage.
Digital bonds will be purchased through National Savings mobile app or other approved channels, with payments made from the buyer’s linked bank account or National Savings Directorate (CDNS) savings account.
The prize money will be credited directly to the same linked accounts, offering a seamless experience for users.
The digital prize bonds will initially be available in all denominations. Ministry of Finance will notify the exact amounts periodically, with the draws held quarterly or as announced. Importantly, the prize money will be taxable, but Zakat will not apply.
This step is expected to cut the cost of printing and logistics involved in traditional paper-based system and improve the overall transparency and accountability of the prize bond process.
The government also ensured that in case of the investor’s death, the prize money will be transferred to the legal heirs or the nominated beneficiary, if the amount does not exceed half a million.
