Pakistan government introduces digital prize bonds

The Finance Division has notified draft rules for the introduction of digital prize bonds, proposing a streamlined, paperless process through the Central Directorate of National Savings (CDNS).

The proposed Digital Prize Bonds Rules would allow for unlimited investment, with bonds issued in a scrip-less format for an indefinite period.

Under the draft framework, customers can redeem bonds anytime after issuance.

To participate, customers would be required to create a profile on the Digital Prize Bond (DPB) Gateway, accessible via the CDNS mobile application or other approved channels.

The profile must be linked to either a CDNS Savings Account or a bank account in International Bank Account Number (IBAN) format. Payments for bond purchases would be processed through the linked accounts, with the purchase date recorded once payment is successfully made.

The redemption process would be facilitated through the DPB Gateway, crediting due amounts to the same linked accounts used for purchases. In exceptional circumstances, CDNS could opt for payment via government cheque. Customers must promptly update any changes in their information through the designated gateway.

Prize money from the bonds would also be credited to linked accounts. If such amounts are returned to the issuing office for any reason, registered bondholders can claim them within six years from the due date. Beyond this period, the government's liability to pay these amounts would cease.

The proposed rules aim to modernize the prize bonds process, offering convenience and efficiency for customers. Feedback on the draft rules is being sought before finalization.