Govt to introduce digital prize bonds

The federal government has decided to introduce digital prize bonds, which will be processed through a mobile application to ensure secure transactions free from theft or loss.

According to sources, while the prize money will be subject to taxation, Zakat will remain exempt.

The government plans to issue prize bonds in denominations of Rs500, Rs1,000, Rs5,000 and Rs10,000. The digital bonds will only be available for purchase through the National Savings mobile app or other approved channels.

Draws will be conducted quarterly and winnings will be directly transferred to linked bank accounts. Sources further said that the introduction of digital bonds will aid in documenting the economy.

In addition, buyers will have the option to nominate beneficiaries at the time of purchase, ensuring that payouts to heirs are made in accordance with succession certificates.

The transition to paperless bonds will also eliminate printing and logistics costs, and make the system more efficient and cost-effective.