Government to launch digital prize bonds to enhance transparency, reduce fraud

ISLAMABAD: The government is set to launch digital prize bonds, which will be available for transactions through a mobile application and will be credited directly to linked bank accounts or Central Directorate of National Savings (CDNS) accounts at the moment of purchase.

As reported by Express News, while the prize money will be subject to taxation, it will be exempt from Zakat. This new initiative is designed to mitigate risks associated with theft, loss, or damage, all while improving economic documentation, transparency, and accountability.

This shift to a paperless investment method is anticipated to reduce both printing and logistical expenses. Since the digital bonds will be registered in the name of the purchaser, the likelihood of fraud will be significantly decreased. The new system will also facilitate the buying, selling, and claiming of prizes in a more efficient manner.

Initially, the government will issue digital prize bonds in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000, with the ministry planning to announce additional denominations as necessary.

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Adult citizens of Pakistan will have the ability to buy these bonds through the National Savings mobile app or other approved CDNS channels, with payments processed through linked bank accounts or savings accounts. Prize money will be transferred directly into the investor’s linked account, with quarterly draws taking place. The schedule for these draws will be released at the start of each calendar year.

Investors will also be given the option to designate beneficiaries at the time of purchase, and they will retain the flexibility to alter or revoke these nominations in the future.

In the unfortunate event of the investor’s death, both the original bond value and any prize money will be transferred to legal heirs based on a succession certificate. If the total value is Rs500,000 or less, the funds will be disbursed to the nominated individual.