Prize Bonds in Pakistan (2026): How They Work, Denominations, Draws & Tax
By Abdul Ahad · Updated 20 June 2026 · 8 min read
Quick answer: A prize bond is a government savings instrument that pays no fixed return — your capital is safe and redeemable at face value any time, but your only gain is the chance of winning a cash prize in the quarterly draw. Bonds come in denominations from Rs 100 to Rs 40,000; winnings are taxed at about 15% for filers and 30% for non-filers. Unlike National Savings certificates, they offer no guaranteed profit.
AA
Abdul Ahad
Software engineer and personal investor in PSX dividend stocks and Al Meezan mutual funds. Built this tool to answer his own investing questions.
The short version:
- A prize bond is capital-safe (redeem at face value any time) but pays no fixed profit — return = the chance of a prize
- Denominations: Rs 100, 200, 750, 1,500 (bearer) and Rs 25,000 & 40,000 (registered premium); large bearer bonds were phased out
- Draws are quarterly, run by SBP Banking Services Corporation under CDNS
- Winnings taxed ~15% (filer) / ~30% (non-filer); many scholars consider conventional prize bonds not Shariah-compliant
Advertisement
Prize bonds are one of Pakistan's most familiar savings instruments — a government IOU you can buy at any bank, redeem whenever you like, and which might, four times a year, turn into a life-changing cash prize. They are popular precisely because they feel risk-free. But understanding what a prize bond actually returns — and what it does not — is the difference between using them sensibly and mistaking them for an investment they are not.
What a Prize Bond Actually Is
A prize bond is a bearer or registered security issued by the Government of Pakistan through the Central Directorate of National Savings (CDNS). When you buy one, you are effectively lending money to the government. The crucial difference from a National Savings certificate or a bank deposit is how you are rewarded: instead of a guaranteed profit rate, your bonds are entered into periodic draws, and a small number win cash prizes. Your face value is always safe — you can hand the bond back for full value at any time — but in any given draw, most bonds win nothing.
Denominations
Prize bonds have been issued in a range of denominations. The high-value bearer bonds were phased out and replaced with registered “premium” bonds for transparency, while the smaller denominations remain bearer instruments you can buy over the counter.
| Denomination | Type |
|---|
| Rs 100, 200, 750, 1,500 | Bearer (common, over-the-counter) |
| Rs 7,500, 15,000 | Largely phased out / converted |
| Rs 25,000, 40,000 | Registered “premium” prize bonds |
Because the government periodically changes which bonds are issued or discontinued, always confirm the current list and the latest draw schedule on the CDNS website (savings.gov.pk) before buying.
How the Draws Work
Draws are conducted quarterly by the State Bank of Pakistan's Banking Services Corporation (SBP BSC), supervised by CDNS. Each denomination has its own draw with a fixed prize structure — typically one or a few large first prizes, a set of second prizes, and a large number of smaller third prizes. The more bonds of a denomination you hold, the more “tickets” you have in that draw — but the odds on any single bond remain very long.
The Return Reality
This is where prize bonds are most misunderstood. Across all holders, the total prize money paid out is a modest percentage of the total bonds in circulation — so the average return to an ordinary holder is low, and for most people in most years it is simply zero. A few win big; the many win nothing. That is the opposite of a National Savings certificate, where every holder earns a stated, predictable profit.
Worth knowing: because prize bonds pay no profit, money parked in them loses value to inflation while it waits. While inflation runs positive — as it usually does in Pakistan — a bond that never wins quietly loses purchasing power each year, a real cost that the excitement of the draw tends to hide.
Tax on Winnings
If you win, tax is withheld from the prize before you receive it. The rate depends on your filer status:
- Filers (on the Active Taxpayer List): around 15%.
- Non-filers: roughly double — commonly 30%.
On a Rs 1,000,000 prize that is about Rs 150,000 in tax for a filer versus around Rs 300,000 for a non-filer — a Rs 150,000 difference for the sake of having filed a return. Our guide on how to become a filer covers the process; rates are set by the Finance Act, so verify the current figure on fbr.gov.pk.
The Shariah Question
Whether prize bonds are halal is genuinely contested. Many Islamic scholars in Pakistan consider conventional prize bonds non-Shariah-compliant, on two grounds: the prize element resembles a lottery (qimar / maysir), and the underlying government borrowing is interest-based (riba). Other scholars take a different view. The right answer for you depends on the scholar or institution you follow. Pakistanis who want clearly Shariah-compliant options generally use Islamic mutual funds, GoP Ijara sukuk, or Islamic bank deposits instead. Consult a scholar you trust for a personal ruling.
How to Buy, Encash and Claim
- Buy bearer bonds over the counter at commercial banks and National Savings Centres; premium (registered) bonds are bought in your name through designated branches.
- Encash any bond at face value at a bank or National Savings Centre whenever you want — your capital is not locked.
- Check results by matching your bond's serial number against the published draw list on savings.gov.pk.
- Claim a prize by submitting the winning bond, a claim form and your CNIC; the prize is paid after tax is withheld. Note that bearer bonds belong to whoever holds them — keep them as safely as cash.
Are Prize Bonds a Good Place for Your Money?
Prize bonds make sense as what they are: a safe place to park cash with a lottery-style upside and no risk to capital. What they are not is a way to grow savings — they pay no profit, lose ground to inflation, and most holdings never win. If your goal is a predictable return on safe money, National Savings certificates or a money market fund pay a stated profit; our money market funds guide and National Savings comparison cover those. Prize bonds are best treated as a flutter, not a plan.
Bottom line: a prize bond keeps your capital safe and offers a chance at a prize, but pays no fixed return and erodes with inflation while it waits. Winnings are taxed far more lightly for filers (~15%) than non-filers (~30%), and many scholars regard conventional prize bonds as non-Shariah-compliant. Confirm denominations, draw dates and tax rates on savings.gov.pk and fbr.gov.pk before acting.
Frequently Asked Questions
Do prize bonds give a guaranteed return in Pakistan?
No. Unlike a National Savings certificate or a bank deposit, a prize bond pays no fixed profit. Your capital is safe — you can encash the bond for its full face value at any time — but your only return is the chance of winning a cash prize in the quarterly draw. For most holders in any given year the return is zero, while a few win large prizes, so the expected return for an ordinary holding is low and uncertain.
What prize bond denominations are available in Pakistan?
Prize bonds have historically been issued in denominations of Rs 100, 200, 750, 1,500, 7,500, 15,000, 25,000 and 40,000. The high-value bearer bonds were phased out and converted to registered premium prize bonds (notably Rs 25,000 and Rs 40,000), while the smaller bonds (Rs 100, 200, 750, 1,500) remain bearer instruments. Because the government periodically changes which bonds are in circulation, confirm the current list on savings.gov.pk before buying.
How much tax is deducted on prize bond winnings?
Tax is withheld from the prize at the time of payment. The rate is around 15% for active taxpayers (filers) and roughly double — commonly 30% — for non-filers. So filing your return to get on the Active Taxpayer List directly increases what you keep from a win. Rates are set by the Finance Act and change, so verify the current figure on fbr.gov.pk.
Are prize bonds halal in Pakistan?
This is debated. Many Islamic scholars in Pakistan consider conventional prize bonds non-Shariah-compliant, viewing the prize element as resembling a lottery (qimar/maysir) and the underlying government borrowing as interest-based. Others disagree. The position depends on the scholar you follow. Pakistanis seeking clearly Shariah-compliant options generally use Islamic mutual funds, GoP Ijara sukuk, or Islamic bank deposits instead; see our halal investing guide. Consult a scholar you trust for a ruling.
How do I check prize bond results and claim a prize?
Draws are held quarterly by the State Bank's Banking Services Corporation under the Central Directorate of National Savings. After each draw the winning numbers are published; you check your bond's serial number against the list (on savings.gov.pk or at a National Savings Centre). To claim, submit the winning bond with a claim form and CNIC at a National Savings Centre or authorised bank; the prize is paid after tax is withheld. Keep your bonds safe — bearer bonds belong to whoever holds them.
Where can I buy prize bonds in Pakistan?
Prize bonds are sold through National Savings Centres and many authorised commercial banks and State Bank of Pakistan field offices. You pay the bond's face value to purchase it, with no markup, and can later encash it for the same amount. Because the set of bonds currently on sale changes over time, confirm availability and outlets on savings.gov.pk before going to buy.
Is there a time limit to claim a prize bond prize?
Yes. Prizes must be claimed within a set period after the relevant draw, after which the right to the prize generally lapses. This is why holders are advised to check their numbers against each quarterly result promptly rather than holding bonds unchecked for years. For the exact claim window and the documents required, verify the current rules on savings.gov.pk.
What happens if my prize bond is lost or stolen?
The smaller bonds (Rs 100, 200, 750, 1,500) are bearer instruments, meaning whoever physically holds them can encash them, so a lost or stolen bearer bond is difficult to recover. Registered premium prize bonds are held against your CNIC, which adds a layer of protection. To understand what recourse, if any, applies to your bond type, check the procedures on savings.gov.pk.
What is the difference between prize bonds and National Savings certificates?
A National Savings certificate pays a fixed, scheduled profit on your money, giving you a predictable return. A prize bond pays no profit at all; instead it enters you into quarterly draws for cash prizes, so your return depends entirely on chance. Both protect your original capital, but the certificate offers steady income while the bond offers an uncertain payout. Compare current product details on savings.gov.pk.
Can overseas Pakistanis buy prize bonds, and are there foreign-currency prize bonds?
The government has issued certain bonds aimed at overseas Pakistanis, including products tied to foreign currency such as US dollars, alongside the regular rupee bonds. Eligibility, the channels for purchase from abroad, and whether a given bond is currently being issued all change over time. Overseas Pakistanis should verify the current options and rules on savings.gov.pk and with their bank before relying on any specific scheme.
Advertisement
⚠ This guide is for educational purposes only and is not investment, tax, religious, or financial advice. Prize bond denominations, draw schedules, prize structures and tax rates are set by CDNS, SBP and the Finance Act and change over time. Shariah views differ between scholars. Verify current details on savings.gov.pk and fbr.gov.pk, and consult qualified financial and religious advisers for your situation before acting.