Qudsia Bano

The launch of digital prize bonds to replace the discontinued bearer prize bonds is expected to modernize the savings environment by eliminating physical instruments and introducing a fully digital system, reports WealthPK.

This initiative — spearheaded by the Central Directorate of National Savings (CDNS) under the Ministry of Finance – aims to enhance transparency and encourage formal investment. Under the new framework, the digital prize bonds will be issued in denominations specified by the Finance Division and linked to an investor’s bank account or CDNS savings account.

The transactions, including purchases and redemptions, will be conducted through a secure online gateway, ensuring a streamlined and transparent process. Experts have welcomed the initiative, calling it a transformative step toward financial transparency and economic inclusion.

Talking to WealthPK, Dr. Syed M. Abdul Rehman, Shariah Adviser Security and Exchange Commission of Pakistan (SECP), highlighted the benefits of the initiative in reducing untraceable financial transactions. “The digital prize bonds will significantly curb money laundering and illicit financial flows by ensuring that all investments are properly recorded and linked to the legitimate financial channels,” he said.

He further emphasized that this step would boost investor confidence, as the digital system eliminates the risk of counterfeit bonds and unauthorized transfers. Muhammad Kamran, Area Head of Islamic Banking at the Bank of Khyber, said digital prize bonds could encourage greater participation in formal savings instruments.

“The shift to the digital prize bonds provides a secure and accessible investment avenue for a wider segment of population, particularly younger and tech-savvy investors. The elimination of physical bonds will also reduce the risk of loss or theft, making the entire process more efficient and investor-friendly,” he explained. Kamran also pointed out that the integration of the prize bond system with bank accounts ensures seamless fund transfers, further promoting a culture of documented financial activity in Pakistan.

 The initiative is expected to boost Pakistan’s savings rate, which has historically remained low compared to the regional economies. While the long-term impact of digital prize bonds will depend on their implementation and adoption by the public, experts agree that this step represents a significant shift toward a more regulated and accountable financial ecosystem.

Credit: INP-WealthPk