KARACHI: The government has extended the Rs40,000 prize bonds encashment date for another year till Dec 30, 2021.

The State Bank of Pakistan (SBP) on Tuesday issued a circular to all banks asking them to follow the new date for the replacement and encashment of Rs40,000 bonds.

The government in 2019 had decided to withdraw the said prize bonds from circulation aiming to curtail circulation of black money through this large size bonds.

“It is to inform that the Finance Division, Government of Pakistan has extended the last date for encashment, replacement and conversion of Rs40,000 denomination National Prize Bonds (bearer) till Dec 30, 2021,” said the SBP.

The Finance Division on June 24, 2019 restricted the sale of National Prize Bonds (Bearer) of Rs40,000 denomination after June 24, 2019. As per the notification, the prize bonds of Rs40,000 denomination can be encashed and redeemed up to Mar 31, 2020, after which they would not be encashed or redeemed. However, the government kept extending the date for replacement and encashment of the bonds.

The Central Directorate of National Savings (CDNS) earlier said the investors of Rs40,000 prize bonds have withdrawn Rs253 billion by April 10, out of the overall reserves of Rs258bn in CDNS in these prize bonds.

Bondholders had been given the option of either replacing them with Special Savings Certificates or Defence Saving Certificates, premium prize bonds through the SBP field offices or National Bank of Pakistan, United Bank, Habib Bank, Bank Alfalah Ltd, and Allied Bank or encash them at the face value.

Published in Dawn, December 9th, 2020