Government of Pakistan has recently notified that they may no longer sell prize bonds of Rs 7,500 and Rs 15,000 for the time being. The reason for this is that the government must follow the requirements of the Financial Action Task Force (FATF).
In order to comply with FATF protocol, the Government discontinued two denominations of prize bonds on Thursday. FATF had earlier stipulated that the denominations of Rs 25,000 and 40,000 prizes bonds should be sold only to those whose names are on the tickets.
As stated in sub-rule #1 of rule #4 of the National Prize Bond Rules (1999) in its notification to the public, the Ministry of Finance is removing the National denomination of the prize bonds of Rs 7,500 and 15,000 that are currently in operation with the approval of the Minister.
The Government has discontinued these two denominations of prize bonds from the circulating prize bonds currently on the market.
In the past, the biggest prize bond denomination was Rs 40,000, but after its discontinuation, Rs 1,500 now makes up the biggest denomination in circulation today. Take a look at the current prize bond denominations below:
The government has terminated the cheapest method for getting funds to cover the budget shortfall-the prize bonds-because of concerns about the discount rate. Interestingly, the next draw for these prize bonds was scheduled for next week, but now they have been discontinued. People had invested more than Rs 100 billion in these prizes.
Additionally, those who have already registered their Rs 25,000 and Rs 40,000 prize bonds should follow these steps: