Pakistan News

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.

Here is the latest information in the table below that shows the number of winners of each bond & their prizes respectively.

Denominations (Rs) First Prize 2nd Prize 3rd Prize
No# Amount (Rs) No# Amount (Rs) No#  Amount (Rs)
Rs.100/- 1 700,000 3 200,000 1199 1,000
Rs.200/- 1 750,000 5 250,000 2394 1,250
Rs.750/- 1 1,500,000 3 500,000 1696 9,300
Rs.7,500/- 1 15,000,000 3 5,000,000 1696 93,000
Rs.1,500/- 1 3,000,000 3 1,000,000 1696 18,500
Rs.15,000/- 1 30,000,000 3 10,000,000 1696 185,000
Rs.25,000/- 1 50,000,000 3 15,000,000 1696 312,000
Rs.40,000/- 1 75,000,000 3 25,000,000 1696 500,000

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.

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 2019But 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%.

Conclusion

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.

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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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