KARACHI – According to the latest debt statistics issued by the State Bank of Pakistan (SBP), the investment in unregistered prize bonds has witnessed a significant surge, recording an increase of 17 percent to reach Rs922.78 billion by the end of December 2018.
This marks a notable rise from the ending stock of Rs788.4 billion reported in the same month a year prior.
Throughout the year, prize bonds with a denomination of Rs7,500 proved to be an attractive avenue for investors, experiencing a substantial growth of 27.37 percent. The investment in these bonds reached Rs95.99 billion by the end of December 2018, compared to the ending stock of Rs75.36 billion in December 2017.
Investors also found high-valued denominations to be appealing during the year. The ending stock of investments in Rs25,000 denomination prize bonds increased by 16.6 percent, reaching Rs156.75 billion by December 2018 compared to Rs134.36 billion a year ago. Similarly, the investment in prize bonds with a denomination of Rs40,000 grew by 14.71 percent, reaching Rs259.1 billion from the ending stock of Rs225.86 billion as of December 2017.
In addition to unregistered prize bonds, the stock of registered prize bonds with a denomination of Rs40,000 also experienced a significant uptick. The ending stock for registered prize bonds reached Rs5.83 billion, indicating a notable increase of 34.5 percent compared to Rs4.338 billion during the same period the previous year.
Prize bonds are a popular investment choice in Pakistan, offering individuals the opportunity to win tax-free prizes through periodic draws. The surge in investment, particularly in higher-denomination prize bonds, reflects the ongoing appeal of this investment avenue among a wide spectrum of investors.
The SBP’s debt statistics provide insights into the shifting preferences of investors and the overall dynamics of the financial market. The sustained growth in prize bond investments suggests that investors continue to seek a diverse range of investment opportunities, and prize bonds remain an attractive option for those looking for both security and the chance to win lucrative prizes.
As the trend in prize bond investments continues, market analysts will likely keep a close eye on the evolving patterns and investor behavior, providing valuable information for policymakers and market participants alike.
In conclusion, the substantial increase in the investment in unregistered prize bonds highlights the enduring popularity of this investment instrument among investors in Pakistan. The diverse denominations and the potential for tax-free prizes contribute to the attractiveness of prize bonds, making them a preferred choice for many seeking a balanced investment portfolio.
