The government is set to launch digital prize bonds, which will be managed through a mobile application and linked directly to bank accounts or Central Directorate of National Savings (CDNS) accounts upon purchase. According to an *Express News* report, the prize money from these bonds will be taxable but exempt from Zakat deductions. This initiative aims to minimize risks such as theft, loss, or damage while promoting economic documentation, transparency, and accountability.
The introduction of paperless digital bonds is expected to significantly reduce printing and logistical expenses. Since these bonds will be registered under the buyer’s name, the likelihood of fraud will be greatly diminished. Additionally, the digital system will streamline the processes of buying, selling, and redeeming prizes, making transactions more efficient.
Initially, the government plans to issue digital prize bonds in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000. The ministry will announce further denominations as required. Adult Pakistani citizens will be able to purchase these bonds through the National Savings mobile app or other approved CDNS channels, with payments made via linked bank accounts or savings accounts.
Prize money will be directly credited to the investor’s linked account, and quarterly draws will be conducted. The schedule for these draws will be announced at the start of each calendar year. Investors will also have the option to nominate beneficiaries at the time of purchase, with the flexibility to modify or cancel these nominations later if needed.
In the event of an investor’s death, the original bond value and any prize money will be transferred to legal heirs based on a succession certificate. If the total amount is Rs500,000 or less, it will be paid directly to the nominated individual. This digital initiative marks a significant step toward modernizing the national savings system, offering convenience, security, and efficiency to investors.
