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Role of Prize Bonds in Pakistan’s Economy

Here's What You Need to Know prize bond rates

Prize bonds are one of the best investments to roll in quicker & huge returns in your bank. The Central Directorate of National Savings’ (CDNS) introduced the first prize bond in Pakistan back in October 1960 of just RS.10.

Fast-forwarding to 2021, now these prize bonds have different face values, have generated billions of revenue for the state & also helped a major population of the country.

Want to know how?

Well, to understand the role of prize bonds in Pakistan’s economy, first, let’s talk about the concept of prize bonds, how it works, who holds these prize bonds, and how you can win millions…even if you’re completely new to these schemes.

After that, you’ll have a better judgment that prize bonds are not only a get-quick-rich scheme, but have a major impact on the economy of Pakistan too.

(Or, if you’re already familiar with how a prize bond works, skip this section and scroll over to the heading “Role of Prize Bonds in Pakistan’s Economy” below in the post)

Let’s understand the lucky-biz of prize bonds.

What is a prize bond & how does it work?

Think of a prize bond as a lottery, where a fortunate person wins a lot of cash.

If you become the winner of a prize bond, you win a lot of cash with respect to the money you spent on buying a prize bond.

These bonds are of various denominations starting from 100, 200, 750, 1500, 7500, 15000, 25000, and even 40,000.

While 40,000’s is a premium prize bond, which means the Government returns a fixed 3% interest every month to a lucky winner by doing business with the money collected/borrowed through premium prize bonds.

Simply put, prize bonds are a great opportunity for even a common citizen to become a millionaire overnight because the chances of winning are equal for everyone. Who knows if it’s their lucky day?

If you want to invest, you can deposit your prize bond money in the State Bank of Pakistan or other commercial banks that allow such services, for example; Bank-Al-Habib.

The National Savings Committee of Pakistan holds these schemes every three months. The committee also announces the result of the lucky draw. You can go to the committee’s website, enter your prize bond number, & see if you’re the lucky winner.

How Government raises money by issuing prize bonds?

Prize bonds are actually the financial instruments and the Pakistani Government issues them to raise their money and it has been going so for a long time. The government issues these prize bonds of different denominations in different series and in this way no prize bond remains unsold because people who have a craze to increase their money by winning prize bonds, buy these bonds in a series in a hope that their prize bond would be picked in a draw and they would win a cash prize.

Govenment issues these prize bonds in different series marked by letters. For example, the government launches prize bonds in series of letter A and each series there are 999,999bonds—one less of a million and in this way, Governmnet makes money.

Wondering how to claim the prize money?

Well, if you happen to be a lucky winner, you need to fill the winner’s claim form & submit it to the State Bank of Pakistan along with a copy of CNIC, signed original bond & its photocopy.

The price up to RS.18,500/- will be delivered the same day, and for the price of RS.185,000/-, it will take ten days. The price above RS.500,000 will take twenty days to deliver to the owner, after submitting the winning claim form to the State Bank of Pakistan.

But bear in mind, a filer has to pay 15% tax on the prize money. Whereas, a non-filer has to pay 25% taxes on the prize money. The time period to withdraw the winning amount is six years, after that the prize money will expire according to the Government’s law.

Want to know the winning tricks of prize bonds?

Well, I hate to ruin the mode, but there are no 100% accurate tricks or formulas to win a bond. It all depends upon your luck.

However, there is one trick that a lot of people use hoping they could win — and that is…using a prize bond guess paper.

A guess paper prize bond is a prediction-based graphical representation or calculation of the next lucky draw that shows what could be the next lucky number, which is easy to understand by everyone who invests in bonds.

People, based on their experience, previous lucky numbers, & guesses, sell guess papers online saying it’s a 100% winning trick. One of the famous is “prize bond premium guess papers gogi”.

But, at the end of the day, it all depends upon your luck because, an electronic machine — which is operated by a child, generates the lucky number. So no one can actually know what’s the next lucky draw number.

That tells, even if you get a guess paper online or through the local market, you should not take it as a 100% success formula.

However, there’s nothing bad in getting help from a free guess paper from a credible & experienced person that may become a cause to earn you millions.

Now, let’s talk about how prize ponds impact Pakistan’s economical state.

What are the chances of winning prize bonds in Pakistan?

As prize bonds are lottery bonds and a kind of investment in which bigger investment yields more winning amount. These bonds are of different costs and expensive bonds are called premium bonds. however, we could not say or guarantee that one would win a bond or not that he has purchased, but there are some suggestion that would help in increasing the chances of winning prize bonds.

  • Purchasing prize bonds in series would help in increasing the chances of winning the prizes.
  • By the investment of a small amount of money.

When you invest money in prize bonds and buy them in series you are more likely to win prizes almost every month.

The Role of Prize Bonds in Pakistan’s Economy

Prize bonds do have a positive impact on the economy.

One thing is clear, the Government earns a huge sum of money worth billions out of these prize bonds schemes every year.

Every year, only around 1.6 billion of prize money gets distributed to approximately just 70,600 citizens, which is a lot less compared to the 212Million population. This prize money that the Government gives back is also worth pennies, compared to the amount the Government earns out of these schemes.

For example, according to State Bank of Pakistan’s statistical data, the collection of just 40,000 premium prize bonds in October 2018 was around 5.8 billion…which surprisingly jumped to 17 billion in October 2019 But the highest cashback is only 80 million on a 40,000 prime bond…and no one knows how many people reinvest their money in these schemes after winning.

However, it’s essential for the Government to make enough revenue to cope with the country’s expenses while releasing yearly budgets.

Also, for the rough years or sudden breakdowns like COVID19 Pandemic, the Government must have enough resources to spend on food & shelter, unemployment, and other need-based necessities.

…And the primary source of income for the Government is through tax collection. But, the taxes alone are not enough, especially for an underdeveloped country like Pakistan.

That’s where the schemes like prize bonds cover the gap of economic growth. Knowing that these are risk-free & have security by the Government itself, thousands of people invest in bonds to win millions in a very short period — and, this results in a considerable amount of revenue for the state too.

So turns out, prize bonds do have a positive give-back to the state; the more a government earns, the better the will be living standard for the citizens.

Here are the two main factors that determine the positive impact of prize bonds on Pakistan’s economy. 

Better Socioeconomic Development

Bonds are not only lucrative for the Government, but for the citizens too.

The investment in prize bonds can be better than any business on earth.

What’s best, you can withdraw your money even after 10 years of the deposit if you don’t win.

But if your luck shines, you can become a millionaire within days.

Every year, thousands of Pakistanis are earning millions through prize bonds.

If that does not sound impressive, through prize bonds you can even borrow actual money or assets depending upon the face value of your bond.

For example, if you have a 25000 original bond, you can give that to someone as collateral to buy or borrow an RS.25000/- asset.

All that fosters a better socioeconomic behavior amongst individuals, where people from even middle or lower middle class can rise & have a rich living standard.

This leads to a better literacy rate, reduction in unemployment, protection of dignity & freedom of speech of individuals, and better health & life expectancy.

More Assets for the Government

As you know at this point, the Government earns more revenue through prize bonds than it actually gives back to the community.

Then, where does that money go?

Well, the Government invests in doing business within or out of the country, such as giving interest-based loans to the commercial banks, buying lands, air crafts, vehicles, & industries; the result is more assets & more revenue for the state.

The more assets & money in the State Bank the Government has; the stronger will be the economy of the country.

Plus, when it comes to premium prize bonds, the Government promises to give back a special interest rate as it does business with the money it collects/borrows from the public or from foreign clients. In Pakistan, the premium prize bond’s interest percentage is 3%.


There are many questions that generate in the mind of people. Here we have given answers to the most commonly asked questions about prize bonds.

In what denominations prize bonds are available?

In Pakistan, the denominations in which prize bonds are available are, Rs. 100, 200, 750, 1500,7500, 15000, 25000, 40000 and also 40000 premium bonds denominations.

What is the schedule of prize bonds in 2022?

The schedule of lucky draw for prize bonds in 2022 is that it is held every second week, that is on the first working day of the month and other on the mid of the month. Every denominartrion draw is held quarterly.

How much time is valid for claiming a prize bond?

Time period that is valid for claiming a prize bond is six years.

When you buy a prize bond, and win it in a draw, then according to National Savings, you can claim your prize for almost six years.

Do you lose your money, when you don’t win?

The best thing about a prize bond is that you would not lose the money that you have invested in buying a prize bond. If your prize bond does not win in the lucky draw you can get your cashback whenever you want. So there is no loss when you invest on buying prize bonds and one can buy them without any hesitation of fear of losing his money.

How to get Prize Bonds?

It is quite easy as you can buy them from National Savings Centers, designated Commercial Bankor from any SBP Banking Service Corporation (BSC) office. Its procedure is to submit an application form with your CNIC copy. When you have bought them, then you wait for your prize bond number in a lucky draw.

If you win in a lucky draw and then you can withdraw your prize from hand operated draw machines. These machines are operated by children in front of the public.

What is the maximum prize on the prize bonds?

The most costly prize bond is premium prize bond of 40,000 and the maximum prize on it for the winners is 80,000,000. Then the second costly prize bond is of normal 40000 prize bond. So the second maximum prize on it is 75,000,000. 

Can prize bonds be bought online?

Prize bonds could not be bought online. You have to go there by yourself and buy them from any local bank, National Savings or State Bank offices by only submitting an application and a copy of your CNIC. So, one must trust on any other website or dealers that are selling prize bonds online, it’s a spam.

Is tax be paid on prize bonds winning amount?

Ofcourse, yes. If you are lucky enough to win a prize bond then you have to pay tax on the winning amount of the prize bond that is 25% for the non tax filers and 15% for FBR NTN holders i.e filers.

What if prize bonds are lost or stolen?

Prize bonds are the barrier type of bonds, These bonds are private which means that whosoever possess these would win and get the winning amount. There is no exchange or refund available for these bonds. If one looses these bonds he will not be able to get the winning amount. So you have to keep your prize bonds safe.

What is the winning amount for all the denominations of the prize bonds?

The winning amount for all the denominations of prize bonds is given below:

Prizes for Rs.100 prize bond:

Winning amounts for 100 rupees prize bonds are,

First prize:   Rs.700,000

Second prize:  Rs. 200,000

Third prize:     Rs.1000 which has total 1200 prizes.

Prizes for Rs.200 prize bond:

Winnig amount for Rs. 200 prize bonds are:

First prize:    Rs.750,000

Second Prize:  Rs.250,000

Third prize:  Rs.1000 which has total 1250 prizes.

Prizes for Rs.750 prize bond:

Winnig amount for Rs. 750prize bonds are:

First prize:        Rs. 15,00,000

Second Prize:    Rs. 500,000

Third prize:       Rs. 9300 which has total 1696 prizes.

Prizes for Rs.1500 prize bond:

Winnig amount for Rs. 1500 prize bonds are:

First prize:        Rs. 30,00,000

Second Prize:   Rs. 10,00,000

Third prize:       Rs.18500 which has total  1696 prizes.

Prizes for Rs.7500 prize bond:

Winnig amount for Rs. 7500prize bonds are:

First prize:         Rs.15,000,000

Second Prize:    Rs. 50,00,000

Third prize:       Rs. 93000 which has total 1696 prizes.

Prizes for Rs.15000 prize bond:

Winnig amount for Rs. 15000 prize bonds are:

First prize:         Rs. 30,000,000

Second Prize:     Rs. 10,000,000

Third prize:       Rs. 1850000, which has total 1696 prizes.

Prizes for Rs.25000 prize bond:

Winnig amount for Rs. 25000 prize bonds are:

First prize:        Rs.50,000,000

Second Prize:   Rs.15,000,000

Third prize:      Rs. 312000 which has total 1696 prizes.

Prizes for Rs. 40000 prize bond:

Winnig amount for Rs. 40,000 prize bonds are:

First prize:         Rs. 75,000,000

Second Prize:    Rs.25,000,000

Third prize:       Rs.500,000 which has total 1696 prizes.

Prizes for Rs.40000 premium prize bond:

Winnig amount for Rs. 40,000 premium prize bonds are:

First prize:        Rs. 80,000,000

Second Prize:  Rs. 30,000,000

Third prize:     Rs.600,000 which has total 1696 prizes.


To cut it short, prize bonds are all about the better economic development of the country, while its major portion also helps individuals to increase the standard of living.

Nizam UD Deen

Nizam Ud Deen has started his professional carrier in 2014. He is now a CEO and Founder of an IT Firm "ORM Group of Services". He is working as a Digital Marketer in IT Field.

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