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ISLAMABAD: The federal government has discontinued Rs25,000 prize bonds from circulation, according to a notification issued by the Finance Division.
The State Bank of Pakistan has issued a circular regarding conversion the redemption and encashment of Rs. 25,000 denomination National Prize Bonds and Premium Prize Bonds.
The investors will not be able to encash or redeem the Rs25,000 prize bond after May 31, 2021. Cash payment for encashments of cited bonds is not allowed. However, The bonds can be converted to Premium Prize Bonds, Special Saving Certificates, Defence Saving Certificates or encashed at face value.
The conversion to certificates can be done through sixteen field offices of the State Bank of Pakistan or at branches of six authorized commercial banks.
The withdrawal has reportedly been done to address the Financial Action Task Force’s concerns over money laundering and terror financing and to tighten the noose around tax evaders.
The government also discontinued the Rs40,000 standard prize bonds in June 2019 on the same grounds and offered similar alternatives to investors. The government is instead offering Premium Bonds, which have to be registered in someone’s name.
