How to Buy Digital Prize Bonds in Pakistan? Step-by-Step Guide

The federal government has taken a significant step by launching digital prize bonds and presenting a draft of the Digital Prize Bonds Registered Rules. The Ministry of Finance has invited public and stakeholder feedback on the proposed system to ensure a smooth transition.

Digital Prize Bond Transactions via Mobile App

As per the latest notification from the Ministry of Finance, digital prize bond transactions will be processed through a dedicated mobile application. This initiative aims to enhance convenience and transparency in the investment process.

Key Features of Digital Prize Bonds

The government has highlighted several key aspects of digital prize bonds:

• Tax on Prize Money: Prize money winnings will be subject to income tax deductions.
• No Zakat Deduction: Unlike other financial instruments, Zakat will not apply to digital prize bonds.
• Unlimited Investment: Investors can purchase an unlimited number of digital prize bonds.
• Eligibility: All adult Pakistani citizens are eligible to invest.
• Non-Transferable Bonds: Digital prize bonds cannot be transferred or pledged to another person.

Inheritance Rules for Digital Prize Bonds

In the event of an investor’s death, the bond value will be transferred to the legal heirs upon presentation of a succession certificate. This provision ensures a smooth and secure inheritance process.

Tax Deduction on Prize Money

Under Section 156 of the Income Tax Ordinance 2001, withholding tax will be deducted from prize winnings:

• 15% for active taxpayers (filers)
• 30% for non-filers (inactive taxpayers)

The introduction of digital prize bonds marks a major shift towards a modernized investment system in Pakistan. With the implementation of mobile app-based transactions, the process is expected to be more efficient and secure. Investors are encouraged to review the draft rules and share their feedback before final approval.

Read More: New Digital Prize Bonds Draw in Pakistan: Purchase, Track, and Redeem Online