CDNS puts off Rs 25,000 prize bond launch to February

ASMA RAZAQ

ISLAMABAD: The Central Directorate of National Savings (CDNS) has decided to postpone the launch date of Rs 25,000 prize bond from December 2011 to February 2012.

Sources told Business Recorder that due to the current security situation, printing of prize bonds has been delayed. Now it has been decided that Rs 25,000 prize bonds would be launched in February 2012, carrying Rs 50 million as prize money.

"We have made all essential arrangements for the launch of the new prize bond and are waiting for its notification", sources added.

Prize bonds are bearer type of security available in the denominations of Rs.200, Rs.750, Rs.1,500, Rs.7,500, Rs.15,000 and Rs.40,000. These bonds have been issued in series. Each series consists of one less than 1,000,000 (999,999) bonds. "The prize draws are held on quarterly basis. So, there are four prize draws a year. The biggest prize bond is worth Rs 40,000. Total amount of money one gets on the biggest prize bond is Rs 70.50 million. The third biggest prize bond, that is worth Rs 15,000, with Rs 30 million prize money to the winning number", sources said.

They said that since the inception of national prize bonds scheme by the CDNS, total investment made through these bonds is about Rs 280 billion so far.

Total investment target set for the saving scheme for the current fiscal year 2011-12 is Rs 186 billion. "The CDNS is expecting to achieve the target even after CDNS reduced the discount rate on 3-year long schemes from 13.33 percent to 12.5 percent per annum, while on 5-year saving schemes from 13.44 to 12.6 percent per annum. The discount rate for the Defence Saving Certificates has been reduced from 13.5 percent to 12.68 percent per annum, while under Behbud Scheme, pensioners and over 60 years old investors made maximum contribution. The discount rate has also been reduced from 15.36 to 14.4 percent per annum", sources added.