Govt likely to redeem discontinued prize bonds

Minister of State for Finance Bilal Azhar Kiyani Thursday, stated that 99.5 percent of the abandoned bearer prize bonds have been redeemed successfully, and the government might grant relief to the remaining 0.5 percent if a large number of confirmed applications are made

In reply to a question raised by MNA Aliya Kamran, Kiyani told the National Assembly, that the plans to withdraw bearer prize bonds of Rs. 40,000, Rs. 25,000, Rs. 15,000 and Rs. 7,500 denominations were taken between 2019 and 2021 as part of Pakistan’s compliance with the Financial Action Task Force (FATF) regime.

He added that in all instances, the investors were originally provided with a six-month series of redemptions or conversions for their bonds, followed by successive extensions.

Altogether, some types of bonds were provided with up to nine extensions, with the last of these lapsing as of December 2024.

He stated that the bondholders were given three options for redemption: convert bearer bonds to registered premium bonds, invest in national saving schemes, or redeem through accounts.

The minister further informed that because of aggressive public awareness drives, Rs. 738.5 billion of the total Rs. 742 billion had already been redeemed.

Just Rs. 3.5 billion of bonds are yet to be redeemed, which is a mere 0.5 percent of the total value, he added. “Despite five years having passed and numerous deadline extensions, a minuscule amount is still outstanding,” he said, adding that if credible applications are made in large numbers, the government will consider proportionate steps.

While responding to Aliya Kamran’s issue regarding foreign Pakistanis and individuals who were unable to meet deadlines under special circumstances, the minister replied that the government was willing to review cases on merit.

In the supplementary discussion, Aliya Kamran emphasized that several overseas Pakistanis had prize bonds kept in personal items or lockers and had lost the deadline by mistake. She asked the minister to grant a special exemption to such people in the interest of financial inclusion.

Kiyani also recognized that the overarching objective of the discontinuation and digitization policy was to modernize the financial system and adhere to international standards.

He stated that more information on digital transformation in national savings and prize bond reforms could be placed before the House or concerned standing committees for further consideration.

The minister again asserted that any future relaxation or policy change would be done transparently and through appropriate mechanisms.