ISLAMABAD: The federal finance ministry has extended last date for encashment, conversion and redemption of prize bonds of denomination of Rs25,000 and Rs40,000 until Sept 30, 2021.

The extension was granted through two different notifications issued by the Finance Division on Friday.

The government has extended the last date for the second time to facilitate holders of these bonds. In June 2019, the government had discontinued the Rs40,000 prize bonds.

The deadline for Rs25,000 bonds was May 31, 2021. It has been discontinued in December 2020.

As per the notifications, people can now redeem these prize bonds until September 30, 2021. The government took the decision to discourage people who evade taxes by investing in these bonds.

Data released by the State Bank of Pakistan on May 21 showed that the net mobilisation of funds through the National Saving Schemes was an outflow of Rs86.3 billion during the nine months of FY21 against a net inflow Rs258bn in the same period of last fiscal year. Prize bonds accounted for over 86 per cent cent of this outflow — at a whopping Rs74.2 billion.

Published in Dawn, May 30th, 2021