Karachi, August 9, 2024 – A staggering amount of Rs 4.22 billion in bearer prize bonds remains unclaimed following the expiration of the deadline for conversion or exchange on June 30, 2024. According to data released by the State Bank of Pakistan (SBP), many holders of these unregistered prize bonds failed to take action despite multiple extensions provided by the government.
The government had previously announced the discontinuation of national prize bonds in denominations of Rs 7,500, Rs 15,000, Rs 25,000, and Rs 40,000 as part of a broader initiative to document the economy and curb illicit financial activities. Bondholders were given the opportunity to convert their holdings into cash or registered prize bonds, with June 30, 2024, set as the final date for such conversions. However, as of now, there has been no indication from the government of any further extension.
The SBP’s data breaks down the unclaimed amounts by denomination, revealing that Rs 1.287 billion worth of bonds in the Rs 7,500 denomination, Rs 1.503 billion in the Rs 15,000 denomination, Rs 700 million in the Rs 25,000 denomination, and Rs 728 million in the Rs 40,000 denomination have not been claimed.
The decision to phase out bearer prize bonds was part of a larger effort by the government to bring more transparency to financial transactions and reduce the prevalence of unregistered assets. Bearer bonds, by their nature, are not registered to any particular person, making them attractive for individuals seeking to move money anonymously. By discontinuing these bonds and encouraging their conversion into registered financial instruments, the government aimed to increase the documentation of wealth and financial transactions within the economy.
Despite the government’s efforts, the significant amount of unclaimed bonds suggests that a large portion of bondholders either were unaware of the deadline or chose not to participate in the conversion process. With the deadline now passed, it remains unclear what will happen to the unclaimed bonds and whether any further measures will be taken by the authorities to address this issue.
As of now, the government has not released any additional information regarding the future of these unclaimed bonds, leaving many questions unanswered for those who failed to act within the prescribed timeframe.
