ISLAMABAD: The Finance Division on Tuesday issued digital prize bonds rules to promote better economic documentation, transparency and accountability.
In this regard, the Finance Division has notified the new rules as the government is set to launch digital prize bonds, which will be transacted via a mobile application and credited directly to linked bank accounts or Central Directorate of National Savings (CDNS) accounts upon purchase.
According to the new rules, there will be no maximum limit for investment in the bonds. The prize money will be subject to taxation, but it will be exempted from Zakat. This paperless investment approach is expected to reduce printing and logistical expenses.
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Since digital bonds will be registered under the buyer’s name, the risk of fraud will be minimised.
Additionally, the process of buying, selling, and redeeming prizes will be streamlined for greater efficiency.
This initiative in exercise of the powers conferred by section 28 of the Public Debt Act, 1944 (XVIII of 1944) aims to mitigate risks of theft, loss, or damage.
To make it more convenient for general public, adult Pakistani citizens can purchase these bonds via the National Savings mobile app or other authorised CDNS channels, with payments made through linked bank or savings accounts.
Prize money will be directly credited to the investor’s linked account, with quarterly draws taking place. The draw schedule will be shared at the start of each calendar year. Investors will have the option to nominate beneficiaries when purchasing the bonds, with the ability to modify or cancel nominations as desired.
In case of death of the bondholder, payment of principal and prize money, if any, in respect of the bond of the deceased shall be payable to his legal heirs according to succession certificate issued in accordance with the law enforced for the time being, in cases where (a) Total net payable amount does not exceed five hundred thousand rupees, payment shall be made to the nominee(s), as mentioned in DPB Gateway by the purchaser, upon furnishing duly verified and attested copy of Family Registration Certificate (FRC) issued by NADRA and affidavit as set out in the SOPs of DPBs, to the effect that he shall be bound to distribute the received amount among all the legal heirs according to their due share as per law of the land; (b) The nominee is a minor, payment shall be made on provision of succession certificate issued in accordance with the law for the time being in force; (c) The nomination has ceased to have effect due to death of the nominee before the death of bond holder or before he has received any sum there under or the purchaser had made no nomination, as the case may be, payment shall be made on provision of succession certificate issued in accordance with the law for the time being in force.
Procedure-CDNS shall, in relation to the Digital Prize Bonds, devise procedures for sale, encashment, payment of prize money and other allied matters to carry out the purpose of these rules.
Copyright Business Recorder, 2025
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