Islamabad, March 9, 2025 – Pakistan is gearing up to introduce paperless prize bonds as part of a comprehensive strategy to curb black money circulation and strengthen the documentation of the economy.
This initiative is being spearheaded by the Central Directorate of National Savings (CDNS), which is in the final stages of launching digital prize bonds to replace the discontinued bearer prize bonds.
The transition to paperless prize bonds is expected to bring multiple advantages, including enhanced security and efficiency. Unlike traditional bonds, digital prize bonds will be registered under the buyer’s name, significantly reducing risks associated with theft, loss, or damage. Furthermore, the move eliminates the logistical costs of printing and distribution, making it a more cost-effective and environmentally friendly option.
This digital transformation marks a pivotal step toward economic transparency and accountability. By shifting to a paperless system, the government aims to streamline transactions, simplify accessibility, and provide a seamless mechanism for purchasing and redeeming prize bonds. According to official documents and a summary prepared by the Ministry of Finance for approval from relevant authorities, the first phase will introduce digital prize bonds in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000, with further denominations to be announced by the Finance Division as required.
A single adult Pakistani citizen can purchase paperless prize bonds through the National Savings Mobile App or any other platform authorized by CDNS. Payments for these bonds will be processed exclusively through a linked bank account or a CDNS savings account. Upon redemption, the prize money will be directly credited to the same account used for the purchase, ensuring a secure and transparent transaction process.
The official document further states that digital prize bond draws will be conducted on a quarterly basis or as per the schedule notified by the Finance Division. At the start of each calendar year, CDNS will announce the draw schedule, while the prize money for each denomination will be determined by the Finance Division. While the prize amount will be subject to taxation, it will be exempt from Zakat deductions.
Investors purchasing digital prize bonds will also have the option to nominate a beneficiary at the time of acquisition, with provisions to modify or cancel the nomination in the future. In the unfortunate event of the bondholder’s demise, the principal amount and prize money will be transferred to their legal heirs based on a succession certificate. If the net payable amount does not exceed Rs500,000, the funds will be disbursed directly to the nominee designated at the time of purchase.
This transition to paperless prize bonds signifies a major milestone in Pakistan’s financial landscape, aligning with global digitalization trends while reinforcing economic integrity. By promoting transparency and secure transactions, the initiative aims to foster greater public confidence in the financial system and contribute to sustainable economic growth.
