With the expiration date looming, holders of unregistered or bearer prize bonds in Pakistan are urged to take action before the window for redemption or exchange closes next month.
Pakistan’s initiative to eliminate unregistered prize bonds aims to enhance economic documentation. Currently, the government has ceased the circulation of unregistered prize bonds with denominations of Rs 40,000, Rs 25,000, Rs 15,000, and Rs 7,500.
The State Bank of Pakistan (SBP) has extended the deadline for redemption and exchange of unregistered prize bonds until June 30, 2024, as per a notification issued on September 6, 2024. This extension provides bondholders with additional time to convert their unregistered bonds into registered ones or redeem them.
In its directive, the SBP has instructed banks to accept requests for encashment, conversion, or redemption of the aforementioned denominations from the general public until June 30, 2024. Furthermore, banks are required to submit consolidated data of these unregistered prize bonds held by them on the last date, i.e., June 30, 2024, by July 2, 2024. Additionally, commercial banks are advised to surrender the unregistered prize bonds by July 31, 2024.
The move to eliminate unregistered prize bonds is part of Pakistan’s broader efforts to formalize its economy and enhance transparency in financial transactions. By transitioning to registered bonds, authorities aim to curb illegal activities such as money laundering and tax evasion, while also promoting financial inclusion and accountability.
Unregistered prize bonds, also known as bearer bonds, pose a risk of misuse due to their anonymity, making them susceptible to illicit activities. Therefore, the transition towards registered bonds is crucial for enhancing regulatory oversight and ensuring compliance with anti-money laundering and counter-terrorism financing regulations.
As the deadline approaches, bondholders are encouraged to proactively engage with their respective banks to facilitate the conversion or redemption process. Failure to take action before the deadline may result in the forfeiture of unregistered prize bonds, leading to financial losses for bondholders.
In conclusion, the expiration of unregistered prize bonds signifies a significant step towards promoting financial integrity and transparency in Pakistan. By adhering to the prescribed deadline, bondholders can contribute to the country’s efforts to build a robust and accountable financial system.