Karachi, March 9, 2025 – Investment in premium prize bonds has witnessed a significant surge of 13.21% over the past year, ending on January 31, 2025, according to the latest data released by the State Bank of Pakistan (SBP).
This increase highlights the growing popularity of premium prize bonds as a secure and profitable investment option.
As per the SBP report, the total investment in premium prize bonds reached Rs. 60.76 billion by the end of January 2025, compared to Rs. 53.67 billion recorded a year earlier. The rise in investment can largely be attributed to the government’s initiative to phase out unregistered or bearer prize bonds, reinforcing the documentation of national savings.
The government had discontinued the circulation of bearer prize bonds across various denominations, with the final deadline for their exchange or redemption being extended multiple times, eventually concluding on December 31, 2024. The denominations phased out included Rs. 40,000, Rs. 25,000, Rs. 15,000, and Rs. 7,500.
The SBP data further revealed that investment in premium prize bonds of Rs. 40,000 denomination rose by 12.41%, reaching Rs. 36.31 billion by January 31, 2025, compared to Rs. 32.30 billion a year earlier. Similarly, investment in premium prize bonds of Rs. 25,000 denomination grew by 14.50%, amounting to Rs. 24.47 billion by January 31, 2025, up from Rs. 21.37 billion a year ago.
Key Features of Premium Prize Bonds
Premium prize bonds offer a range of benefits, making them a preferred choice for investors:
• Attractive profit rate of 1.86%.
• Available in Rs. 25,000 and Rs. 40,000 denominations.
• Registered in the investor’s name for enhanced security.
• Quarterly prize money draws along with bi-annual profit payments.
• Accessible to Pakistani citizens, including adult individuals and overseas Pakistanis.
• Direct credit of prize money and profit into the investor’s bank account.
• No application forms required for claiming prize money and profit.
• Highest prize money of Rs. 30,000,000 for Rs. 25,000 bonds and Rs. 80,000,000 for Rs. 40,000 bonds.
• No limit on investment amount or tenure.
• Subject to withholding tax but exempted from Zakat.
• Bonds are transferable and pledgeable.
• Can be purchased through cash, cheque, pay order, and bank draft.
• Available at State Bank of Pakistan (SBP) offices and authorized commercial bank branches.
Required Documents for Purchasing Premium Prize Bonds
To invest in premium prize bonds, the following documents are required:
• Copy of CNIC.
• Account Maintenance Certificate (including account title, IBAN number, account status, bank, and branch name).
• Tax certificate (for filers).
• CNIC details of the nominee.
• Old-age citizens and women can approach the counter official directly without waiting in line.
With the increasing shift towards documented investments, premium prize bonds continue to provide a secure, tax-efficient, and profitable avenue for investors seeking stable returns and attractive prize winnings.