When it comes to saving money and trying your luck at the same time, Prize Bonds have always been a hot topic in Pakistan. For decades, they have served as a unique form of investment-safe, government-backed, and with the possibility of earning a handsome reward without any risk of loss. But while almost every Pakistani has heard the term “prize bond,” many still don’t fully understand how they work, why people buy them, and whether they are really a good option for saving money.
Let’s break it all down in a way that’s simple, clear, and useful for you.
What Exactly Are Prize Bonds?
Prize Bonds are basically a type of lottery bond issued by the Government of Pakistan through the National Savings department and State Bank of Pakistan. Unlike a regular lottery, you don’t “spend” your money to enter. Instead, you buy a bond, keep it with you, and it stays your money. There is no interest or profit earned on prize bonds, but you get the chance to win prizes through quarterly draws.
Think of it like this:
You’re not losing anything because your bond can always be encashed at face value.
You’re also in the running for a potential jackpot worth millions.
This combination of security + chance is what makes prize bonds so popular among ordinary people in Pakistan.
Types of Prize Bonds Available in Pakistan
Prize bonds come in different denominations, making them affordable for almost everyone. Currently, the available denominations are:
- PKR 100
- PKR 200
- PKR 750
- PKR 1,500
- PKR 7,500
- PKR 15,000
PKR 25,000 (Premium Bond)
PKR 40,000 (Premium Bond)
The premium bonds (25,000 and 40,000) are linked to your CNIC and bank account, and they also give you a bi-annual profit in addition to prize money. This makes them more attractive for serious investors compared to the smaller denominations.
How Do the Draws Work?
The government holds quarterly prize draws for each denomination. That means every three months, lucky winners are chosen through a transparent computerized balloting system supervised by the State Bank of Pakistan.
Each draw has multiple prize categories:
First Prize – Usually a very large amount, awarded to one person only.
Second Prize – Given to a few winners (often 3).
Third Prize – Given to hundreds or sometimes thousands of winners.
For example, in the case of a PKR 750 prize bond:
1st Prize = PKR 1,500,000 (1 winner)
2nd Prize = PKR 500,000 (3 winners)
3rd Prize = PKR 9,300 (1696 winners)
So, even if you don’t hit the jackpot, your bond can still win smaller prizes.
Where and How Can You Buy Prize Bonds?
Buying a prize bond is simple. You can purchase them from:
State Bank of Pakistan offices
National Savings Centers
Authorized commercial banks
You’ll need your CNIC (Computerized National Identity Card) when purchasing. For premium bonds, your bank account details are also required.
How to Claim Prize Money?
If you’re one of the lucky winners, here’s how to claim your prize:
Fill out a claim form (available at National Savings Centers or banks).
Attach a copy of your CNIC.
Submit the winning bond along with the form.
For premium bonds, the prize is transferred directly into your bank account.
Important to note: Tax is deducted from the prize money before payment. For filers, the withholding tax rate is lower compared to non-filers.
Why Pakistanis Love Prize Bonds
Prize bonds have become a part of Pakistani culture. You’ll find people discussing upcoming draws in tea shops, offices, and even family gatherings. But why exactly are they so popular?
No Risk of Loss – Unlike gambling, you don’t lose your money.
Easy to Buy and Sell – No complicated paperwork.
Chance of Huge Rewards – Ordinary people can dream of winning life-changing money.
Government Backing – Safe and secure because they are issued by the State.
Cultural Trend – Many people gift prize bonds at weddings or birthdays.
Are Prize Bonds Really a Good Investment?
Here’s the honest truth: Prize bonds are not an “investment” in the traditional sense. You don’t earn profit or interest unless you hold premium bonds. They are more like a savings tool combined with a lottery ticket.
If your goal is to grow your wealth, options like National Savings Schemes, fixed deposits, or even mutual funds might give better guaranteed returns. But if you want a safe place to park money with the added thrill of possibly winning millions, prize bonds make sense.
Common Mistakes People Make
Buying and Forgetting: Many people buy bonds and never check draw results. You could be sitting on a winning bond without knowing.
Not Registering Bonds: For premium bonds, not linking with CNIC means you can’t claim prizes properly.
Relying Only on Prize Bonds: Smart savers don’t put all their money here-they diversify.
Final Thoughts
Prize bonds in Pakistan are a unique blend of savings, culture, and luck. They may not be the fastest way to grow wealth, but they remain one of the safest and most exciting ways to save. For students, small business owners, and families, they’re accessible and full of possibilities.
At the end of the day, a prize bond is like buying a ticket of hope. Maybe you’ll win, maybe you won’t-but you’ll always have the security of your original money. And who knows? Your next bond might just be the one that changes your life.
📌 Pro Tip: If you’re serious about growing your money, combine Prize Bonds with savings accounts, mutual funds, or small businesses—that way you get both security and growth.