Govt plans to introduce digital prize bonds for secure transactions

The government is likely to introduce digital prize bonds which will be transacted through a mobile application and credited directly to linked bank accounts or Central Directorate of National Savings (CDNS) accounts at the time of purchase.

According to the report, prize money will be taxable but exempt from Zakat. The initiative aims to reduce risks of theft, loss, or damage while enhancing economic documentation, transparency, and accountability.

This paperless investment method is expected to cut printing and logistical costs. Since digital bonds will be registered under the buyer’s name, the risk of fraud is minimised. The move will also streamline buying, selling, and prize redemption processes efficiently.

The government will initially issue digital prize bonds in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000. The ministry will notify additional amounts as needed.

Adult Pakistani citizens can purchase the bonds through the National Savings mobile app or other approved CDNS channels, with payments made via linked bank accounts or savings accounts.

Prize money will be credited directly to the investor’s linked account, and quarterly draws will be conducted. The schedule for these draws will be announced at the beginning of each calendar year.

Investors will have the option to nominate beneficiaries at the time of purchase, with the flexibility to modify or cancel nominations later.

In the event of the investor’s demise, the original bond value and prize money will be transferred to legal heirs based on a succession certificate. If the total amount is Rs500,000 or less, it will be paid to the nominated person.