Islamabad, March 9, 2025 – Pakistan is taking a significant step towards curbing the circulation of black money and enhancing the documentation of its economy with the upcoming launch of paperless prize bonds. Spearheaded by the Central Directorate of National Savings (CDNS), the initiative is set to replace the now-discontinued bearer prize bonds with a digital, more secure system.
This transformation to paperless prize bonds aims to offer multiple advantages, the most notable being increased security, transparency, and cost-efficiency. Unlike traditional paper-based bonds, the new digital bonds will be registered under the buyer’s name, reducing the risks associated with theft, loss, or damage. By digitizing the entire process, the government hopes to eliminate the logistical costs linked to printing, distribution, and maintenance of physical bonds. The move is not only more cost-effective but also environmentally friendly.
The shift to paperless bonds aligns with the government’s broader goal to improve economic transparency and reduce the flow of unaccounted-for money within the economy. The transition will simplify the process of purchasing, holding, and redeeming prize bonds, ultimately contributing to a more accountable and formalized financial system. According to the official documents and a summary prepared by the Ministry of Finance, the first phase of this initiative will introduce digital prize bonds in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000, with further denominations expected to be added as needed.
To purchase the new digital prize bonds, adult Pakistani citizens will be required to use the National Savings Mobile App or any other platform authorized by CDNS. All transactions, including the purchase of bonds, will be processed exclusively through a linked bank account or a CDNS savings account. When the bonds are redeemed, the prize money will be directly credited to the same account, ensuring secure and transparent transactions.
The digital prize bond draws are set to be held quarterly or according to the schedule specified by the Finance Division. At the start of each calendar year, CDNS will announce the draw schedule, and the prize amounts for each denomination will be decided by the Finance Division. Although the prize money will be subject to taxation, it will be exempt from Zakat deductions, making the system more user-friendly.
Another feature of the new system will be the ability for investors to nominate a beneficiary when purchasing the digital prize bonds. This will allow for the transfer of both the principal amount and any prize money to the nominated beneficiary in the event of the bondholder’s death. If the net payable amount does not exceed Rs500,000, the funds will be directly disbursed to the nominated beneficiary without the need for a legal succession certificate.
The introduction of paperless prize bonds is a crucial development in Pakistan’s efforts to modernize its financial sector. This initiative not only aligns with global trends in digitalization but also reinforces the government’s commitment to fostering economic integrity. By providing a secure, transparent, and efficient method for individuals to participate in the country’s prize bond system, Pakistan aims to boost public confidence in its financial system, support economic formalization, and encourage greater participation in the country’s financial markets.
In summary, the digital prize bonds are set to revolutionize Pakistan’s prize bond system by reducing reliance on paper, enhancing security, and encouraging greater financial transparency. The move will not only curb black money but also streamline financial transactions, paving the way for sustainable economic growth.