ISLAMABAD (Kashmir English): The Finance Division of Pakistan has directed the Central Directorate of National Savings (CDNS) to launch digital prize bonds.
These bonds will be fully digital and can be bought and sold through a mobile app. At the time of purchase, the digital prize bond will be directly transferred to the buyer’s linked bank account or savings account of the Central Directorate of National Savings (CDNS).
Through digital prize bonds, investors will be free from the risks of theft, loss or wastage as these bonds will be registered in the name of the buyer.
Moreover, this initiative will eliminate the cost of printing and delivering paper bonds, which will also reduce government expenditure.
According to the summary prepared by the Ministry of Finance, initially, digital prize bonds of Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 will be introduced, while bonds of higher denominations will be issued from time to time through notifications.
Adult Pakistani citizens will be able to purchase these bonds through the National Savings Mobile App or any approved platform of CDNS, and the payment will be made through a linked bank account or savings account.
The draw process will be held on a quarterly basis, the schedule of which will be issued by the National Savings Directorate at the beginning of each calendar year.
The prize money of the winning bonds will also be redeemable through the mobile app and will be transferred to the winner’s linked bank account or savings account.
The prize money will be taxed but will be exempt from Zakat. The user will also be able to register a nomination while purchasing the bond, which can be changed or canceled later.
In the event of the death of the buyer, the principal amount of the bond and the prize money will be transferred to the legal heirs as per the succession certificate, while if the amount is less than five lakh rupees, it will be paid to the nominated person.
This new system is being implemented to make the investment process easy and secure and to move the country’s economy towards a digital economy.
