Unlimited investment: draft rules for digital prize bonds notified

ISLAMABAD: In a significant step towards introducing digital prize bonds, the Ministry of Finance has issued the draft rules for registered digital prize bonds, permitting unlimited investment. 

According to reports, transactions for digital prize bonds will be conducted via a mobile app, and while prize money will be subject to taxation, Zakat will not be applicable. Every adult Pakistani citizen will be eligible to invest in these bonds, with no upper investment limit. 

As per the notification, ownership transfer and pledging of digital prize bonds will not be allowed. In the event of an investor’s death, the pay-out will be made to legal heirs in accordance with a succession certificate. 

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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.

Currently, prize money on manual prize bonds is subject to withholding tax under Section 156 of the Income Tax Ordinance 2001. The tax deduction rate stands at 15% for filers and 30% for non-filers.

Last week, the government officially launched Pakistan Crypto Council (PCC), marking a significant step in the country’s efforts to regulate and integrate blockchain technology and digital assets into its financial landscape.

According to the Finance Ministry’s statement, the crypto council is set to play a pivotal role in formulating policies, fostering innovation, and ensuring a secure and forward-thinking approach to crypto adoption in Pakistan.

Finance Minister Muhammad Aurangzeb will serve as the Chair of the Pakistan Crypto Council, demonstrating the government’s commitment to the evolving digital economy.

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Likewise, Bilal Bin Saqib, the Chief Advisor to the Finance Minister on the Pakistan Crypto Council, has been appointed as the CEO of the Council, bringing his expertise in blockchain technology, investment strategy, and digital innovation to spearhead the initiative.

The statement said that the formation of the Pakistan Crypto Council signifies the government’s proactive stance in moving Pakistan to the forefront of the global shift towards blockchain technology and digital assets. “With regulatory clarity and a structured approach, Pakistan aims to foster a safe and compliant environment for investors, businesses, and innovators in the crypto space.”