The government of Pakistan has officially issued new rules for digital prize bonds, marking a significant step toward financial transparency and economic documentation. The Finance Division formally notified these regulations on Tuesday, laying the groundwork for the launch of digital prize bonds, which will replace traditional paper-based bonds with a secure and efficient electronic alternative.
Under the new framework, digital prize bonds will be available for purchase through a mobile application, with transactions seamlessly processed through linked bank accounts or the Central Directorate of National Savings (CDNS) accounts. This move is expected to enhance convenience while reducing logistical and printing costs associated with physical prize bonds.
One of the most notable aspects of the new regulations is the absence of an upper investment limit, allowing investors to purchase digital bonds without restrictions. However, while prize money earned from these bonds will be subject to taxation, it will be exempt from Zakat deductions. The digital format also ensures that each bond is registered in the buyer’s name, significantly lowering the risks of fraud, theft, or loss—a major concern with traditional paper-based bonds.
The process for purchasing, selling, and redeeming these digital bonds has been streamlined to improve efficiency and security. Investors will be able to access the bonds through the National Savings mobile app or other authorized CDNS channels, making it easier for individuals across Pakistan to participate in the prize bond scheme. Quarterly draws will be held to determine winners, with prize money directly credited to the investor’s linked bank account, eliminating the need for physical claims or encashment hassles.
To further improve financial planning, the government has introduced a nomination system for digital bonds. Investors will have the option to nominate beneficiaries when purchasing the bonds and can modify or cancel nominations as needed. In the unfortunate event of a bondholder’s passing, payments—including the principal amount and any prize winnings—will be made to legal heirs as per the applicable succession laws. If the total net payable amount does not exceed five hundred thousand rupees, payment will be processed to the nominee(s) listed in the Digital Prize Bonds Gateway, subject to verification via the Family Registration Certificate (FRC) issued by NADRA and an affidavit ensuring fair distribution among all legal heirs. For minors listed as nominees, a valid succession certificate will be required before payment can be disbursed.
In cases where no valid nomination exists, or if the designated nominee has also passed away, the funds will be distributed based on a legally issued succession certificate. The CDNS will oversee the development of operational procedures for the sale, encashment, and prize disbursement of digital bonds to ensure seamless implementation of these new regulations.
The introduction of digital prize bonds is expected to modernize Pakistan’s savings and investment landscape, offering a more secure and efficient way for citizens to participate in government-backed prize schemes. By leveraging technology, the government aims to enhance financial inclusion, reduce fraud, and promote a more transparent financial ecosystem.
