The investment in prize bonds was 17% higher in 2018 as compared to 2017.
In a sign that Pakistanis are investing more in prize bonds, National Savings sold prize bonds worth Rs134 billion in 2018, witnessing an increase of 17% over the preceding year, the data from the State Bank of Pakistan shows.
National Savings, Pakistan’s largest investment and financial institution, reported a total investment of Rs923 billion in prize bonds as of last December, up from Rs788 billion from a year ago.
Among all denominations, Rs7,500 prize bonds saw the highest increase of 27% over the comparable period of last year followed by Rs15,000 prize bonds that saw an increase of almost 20%.
National savings sell bonds in different denominations starting from Rs100, the cheapest, all the way up to Rs40,000.
The institution gives three prizes in each category through a lucky draw. For example, the winner of first prize in Rs40,000 bond gets Rs75 million. The second prize is given to three winners each who are paid Rs25 million each and third prize is given to 1,696 winners each of whom is paid Rs500,000. Whether they win it or not, the investors can sell off their bonds and get the cash back when they want their money back.
With more than seven million investors, National Savings has over Rs3.4 trillion in its kitty. People can invest in its products through its 376 branches across Pakistan.
It is a department attached to the finance ministry that promotes a culture of savings by mobilising national savings. The channel was first used during the first and second world wars by the British government to raise funds for war-related expenses.
Besides promoting financial savings in the economy, it generates funds for the government to finance a budgetary deficit (loss) and infrastructure.