Investment in premium prize bonds doubles to Rs38.4 billion

Shahnawaz AkhterWeb Editor

05th Jul, 2021. 08:21 pm
Tax authorities

KARACHI: Investment in premium prize bonds registered 100 per cent growth; following the ban on the bearer prize bonds and initiative of the government to comply with the Financial Action Task Force (FATF) conditions.

According to statistics released by the State Bank of Pakistan (SBP) on Monday, the investment in registered prize bonds worth Rs25,000 and Rs40,000 denominations posted an increase of 100.1 per cent to Rs38.40 billion by the end of May 2020, compared with Rs19.19 billion by the end of the corresponding period of the last year.

The documentation of money invested in the National Savings Schemes is a prerequisite to comply with the conditions of the Financial Action Task Force. The requirement is made mandatory to stop money laundering and terror financing by using unregistered mode of financing.

To comply with the condition, the government in a first step stopped the issuance of Rs40,000 denomination prize bonds on June 24, 2019.

Later, through a notification on December 10, 2020, the circulation of Rs25,000 denomination national prize bonds was stopped from circulation.

Most recently, the government in April 2021 had decided to stop the circulation of Rs7,500 and Rs15,000 bearer prize bonds. People have been given the option to convert/exchange Rs15,000, Rs25,000, and Rs40,000 bearer prize bonds by September 30, 2021. Meanwhile, the bearer prize bonds of Rs7,500 denomination can be exchanged by December 31, 2021.

The bonds can be converted to Premium Prize Bonds (Registered) through the 16 field offices of the State Bank of Pakistan’s Banking Services Corporations or through the designated branches of the commercial banks.

The bonds can also be converted to the Special Savings Certificates or Defence Savings Certificates through the SBP’s field offices, authorised commercial banks or the National Savings Centres.

The bonds can be encashed through transferring the proceeds to the holders’ bank account through the SBP’s field offices, authorised commercial banks or the National Savings Centres.

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