KARACHI: About Rs177 billion have been documented since the termination of bearer bonds of the denomination Rs40,000, announced by the government with fiscal difficulties in June as part of its current repression of rampant black economic activities, as reported The News
According to official statistics made available to The News on Friday, the total investment in bearer denomination bonds of Rs40,000 fell to Rs81.38 billion at the end of July 2019 compared to Rs258 billion in May 2019.
The government suspended these award bonds by means of a notification on June 24, 2019. In accordance with the government announcement, the State Bank of Pakistan (SBP) had also issued a procedure for banks to facilitate the general public the exchange of prize bonuses not registered through three different modes.
The SBP said that these bearer prize bonds cannot be exchanged for cash; however, they can be exchanged for registered prize bonds or become national savings schemes or nominal value (direct transfer to the bank account of the bond holder).
The SBP informed the banks that such prize bonds would not be sold after June 24, 2019, nor would they be collected / exchanged after March 31, 2020, while no more draws will be held for it.
Due to the replacement of bearer bonds of the denomination of Rs40,000, the total investment in prize bonds fell to Rs766 billion in July 2019, compared to Rs951.64 billion in May 2019. Bearer instruments They have been known as a parking lot for undocumented economy. Therefore, the government launched registered prize bonds of Rs40,000 denomination in March 2017 that could be purchased with certain requirements, including the national computerized identity card and a valid bank account.
Until May 2019, the total investment in premium premium bonds was Rs6.17 billion. But after the restriction imposed on bearer bonds, the investment in registered prize bonds increased to Rs13.26 billion at the end of July 2019.
According to the SBP, the bearer instrument can be exchanged in savings schemes such as Special Savings Certificates (SSC) or Defense Savings Certificates (DSC). Total investment in savings certificates increased to Rs2.24 billion in June 2019 compared to Rs2.20 trillion in May 2019.
The government aims to transform all bearer prize bonds into registered titles. In this regard, the National Directorate of National Savings in collaboration with the
SBP plans to issue registered bonus bonds without scrip among all denominations in order to document the economy.