What Are Prize Bonds?
A prize bond is a type of government security issued by the Central Directorate of National Savings (CDNS) under the State Bank of Pakistan. Think of it as a lottery ticket that never expires and never loses its face value. You buy a bond for a fixed price, and that bond enters a quarterly draw where cash prizes are awarded to randomly selected numbers.
Unlike a lottery ticket, your prize bond retains its value. If you buy a Rs. 1,000 bond and never win, you can sell it back for Rs. 1,000 at any time. You get unlimited entries into every future draw as long as you hold the bond. And if you ever need the money back, you simply sell the bond or encash it at any National Savings Centre.
Prize bonds have been a part of Pakistani financial life since 1960. They are backed by the full faith of the Government of Pakistan, making them one of the safest savings instruments available. Millions of Pakistanis hold prize bonds as a way to save money while having a chance to win significant cash prizes.
All Six Denominations Explained
Pakistan currently has six active prize bond denominations, split into two categories. Standard bonds are anonymous bearer certificates. Premium bonds are registered to your CNIC and pay quarterly profit to your bank account. Here is the full breakdown for each one.
Rs. 100
Standard (Bearer)QuarterlyFirst Prize
Rs. 700,000
Second Prize
Rs. 200,000
Third Prize
Rs. 1,000
Total Prizes
~1,203 per series
Rs. 200
Standard (Bearer)QuarterlyFirst Prize
Rs. 750,000
Second Prize
Rs. 250,000
Third Prize
Rs. 1,250
Total Prizes
~2,355 per series
Rs. 750
Standard (Bearer)QuarterlyFirst Prize
Rs. 1,500,000
Second Prize
Rs. 500,000
Third Prize
Rs. 9,300
Total Prizes
~1,199 per series
Rs. 1,500
Standard (Bearer)QuarterlyFirst Prize
Rs. 3,000,000
Second Prize
Rs. 1,000,000
Third Prize
Rs. 18,500
Total Prizes
~1,199 per series
Rs. 25,000
Premium (Registered)BiannualFirst Prize
Rs. 50,000,000
Second Prize
Rs. 15,000,000
Third Prize
Rs. 312,500
Total Prizes
~1,199 per series
Rs. 40,000
Premium (Registered)BiannualFirst Prize
Rs. 80,000,000
Second Prize
Rs. 30,000,000
Third Prize
Rs. 500,000
Total Prizes
~1,199 per series
How to Buy Prize Bonds
Buying prize bonds is straightforward. You do not need a bank account (for standard bonds), there is no minimum investment, and there are no ongoing fees. Here is the process step by step. For a more detailed guide, read our complete buying guide.
Pick your denomination
Decide how much you want to invest. Standard bonds (Rs. 100 to Rs. 1,500) are anonymous bearer certificates you can buy without any paperwork beyond a CNIC. Premium bonds (Rs. 25,000 and Rs. 40,000) are registered to your CNIC and pay quarterly profit to your bank account on top of prize draws.
Visit a purchase point
You can buy prize bonds from any National Savings Centre, State Bank of Pakistan BSC office, or authorized commercial bank branch (HBL, UBL, MCB, NBP, and others). Some banks also sell through their mobile apps and online banking, though availability varies.
Bring your CNIC
You need your original CNIC (Computerized National Identity Card) and a photocopy. For Premium bonds, you also need your bank account IBAN because profits and prizes are credited directly to your account.
Fill the form and pay
Complete the purchase form at the counter. Pay in cash or by cheque. For standard bonds, you receive the physical bond certificates immediately. For Premium bonds, you receive a registration certificate linked to your CNIC.
How Prize Bond Draws Work
Prize bond draws are conducted by the CDNS at designated cities across Pakistan. Standard bonds have quarterly draws (four times per year), while Premium bonds have biannual draws (twice per year). The dates and cities are published in advance. You can see the full 2026 draw schedule here.
Each draw awards three tiers of prizes per series. The first prize goes to one bond, the second prize goes to three bonds, and the third prize goes to approximately 1,199 bonds per series. Results are published the same day on the official National Savings website and through PakBonds.
For a deeper dive into the mathematics behind your chances of winning, read our winning odds analysis.
How to Check If You Won
There are three main ways to check your prize bonds. The full guide is in our how to check article, but here is the summary.
PakBonds Automatic Scanner
RecommendedAdd your bonds to your PakBonds portfolio and we check every single draw automatically. You get an email alert the moment a winning bond is detected. This is the fastest and most reliable method.
Official gazette PDFs
Download the official draw result PDF from savings.gov.pk after each draw and use Ctrl+F to search for your bond number. This is free but manual and time consuming if you have many bonds.
National Savings website
The savings.gov.pk website has a bond checker tool. Enter your denomination and number to check individual results. Works well for one or two bonds but impractical for a large portfolio.
How to Claim Your Winnings
If your bond wins a prize, you have up to six years from the draw date to claim it. After six years, the money is forfeited to the government. Here is where to go depending on the prize amount. For the complete procedure including documents, read the how to claim guide.
| Prize Level | Where to Claim |
|---|---|
| Third prize (up to Rs. 500,000) | Any National Savings Centre or authorized commercial bank |
| Second prize (up to Rs. 30,000,000) | SBP BSC office or National Savings Centre |
| First prize (up to Rs. 80,000,000) | SBP BSC office only |
Tax on Prize Bond Winnings
The government deducts withholding tax before paying your prize. The rate depends on whether you are an active taxpayer (filer) or not. As of 2026, filers pay 15 percent and non-filers pay 30 percent. This tax is deducted at source, meaning you receive the net amount after tax.
The practical impact is significant. On a Rs. 1,500,000 first prize (Rs. 750 bond), a filer takes home Rs. 1,275,000 while a non-filer receives only Rs. 1,050,000. That is a difference of Rs. 225,000 on a single prize. Filing your tax returns with FBR before claiming any prize is one of the simplest ways to keep more of your winnings.
For the complete tax breakdown including Premium bond profit taxation, read our tax guide.
Bearer vs Registered Bonds
Standard prize bonds (Rs. 100, 200, 750, and 1,500) are bearer bonds. This means whoever physically holds the bond is considered the owner. There is no name or CNIC linked to them. This is convenient for trading and gifting but risky if the bond is lost or stolen, because anyone who finds it can claim the prize.
Premium bonds (Rs. 25,000 and Rs. 40,000) are registered bonds. They are linked to your CNIC, and only you can claim prizes or receive quarterly profit. If lost, you can get a replacement. This makes them much safer but also means they cannot be transferred or traded informally.
For a detailed comparison, read our registered vs bearer guide.
Are Prize Bonds Halal?
This is one of the most frequently asked questions about prize bonds, and the answer depends on which Islamic school of thought you follow. The debate centers on whether prize bonds constitute gambling (qimar) or a legitimate investment with a prize component.
Those who consider prize bonds permissible point out that unlike gambling, you do not lose your principal. Your invested amount is always fully preserved. The prize is a bonus funded from the collective pool, similar to a cooperative arrangement.
Those who consider them impermissible argue that the prize element introduces an element of chance (maysir) that makes the transaction problematic. The Council of Islamic Ideology in Pakistan has expressed reservations, though it has not issued a binding fatwa prohibiting them.
Premium bonds are generally considered more acceptable from an Islamic perspective because they pay quarterly profit (which resembles a return on investment) in addition to prize draws. For the full analysis including zakat obligations, read our zakat and halal guide.
Five Myths About Prize Bonds
Myth: Some numbers are luckier than others
Reality: Every single number in a series has exactly the same probability of winning. The draw is conducted by the Central Directorate of National Savings using a random number generation process. No number, sequence, or pattern has any statistical advantage.
Myth: Buying bonds from a specific city improves your chances
Reality: The draw is national. A bond purchased in Karachi has the same odds as one bought in Peshawar. The draw city printed on the bond only indicates where the draw ceremony is held, not where winning bonds come from.
Myth: Prize bonds are a scam or the draws are rigged
Reality: Prize bond draws are conducted under government supervision with independent auditors. Results are published in the official gazette and can be verified through multiple independent channels. The system has been running since 1960.
Myth: Old bonds expire and become worthless
Reality: Prize bonds do not expire. A bond purchased in 2010 is still valid and still enters every quarterly draw. The only exception is if the government formally demonetizes a specific denomination, which has happened only once (with Rs. 7,500 and Rs. 15,000 bonds in 2017 and 2019).
Myth: You need to register standard bonds to enter draws
Reality: Standard bearer bonds (Rs. 100 to Rs. 1,500) automatically enter every draw. You do not need to register them anywhere. Simply holding the physical bond is sufficient. Premium bonds are registered by design and also enter draws automatically.
Smart Strategies for Prize Bond Investors
Diversify across denominations. Instead of putting everything into one denomination, spread your investment. Hold some Rs. 200 bonds (most prizes per draw), some Rs. 750 bonds (best third prize ratio), and some Premium bonds (quarterly profit). This maximizes both your chances of winning and your guaranteed returns.
Buy in packets when possible. A packet is 100 bonds with consecutive serial numbers. Statistically, consecutive numbers do not improve your odds per draw, but they make portfolio management much easier and some experienced investors believe in series coverage strategies.
Automate your checking. The biggest risk with prize bonds is not knowing you won. Prizes go unclaimed every year because people do not check. Use PakBonds' automated checker to scan every draw automatically and get instant email alerts for wins.
Become a tax filer before you win. The difference between filer (15 percent tax) and non-filer (30 percent tax) is enormous on large prizes. Filing your annual return with FBR costs nothing and can save you hundreds of thousands of rupees if you win.
Consider Premium bonds for guaranteed income. If you have Rs. 25,000 or Rs. 40,000 to invest, Premium bonds give you the best of both worlds: guaranteed quarterly profit at approximately 9 percent annually, plus entries into draws with prizes up to Rs. 80 million. Read our Rs. 40,000 Premium guide for the full breakdown.
Prize Bond Glossary
New to prize bonds? Here are the key terms you will encounter.
Bearer Bond
A prize bond that is not registered to any specific person. Whoever physically holds the bond is considered the owner. Standard denominations (Rs. 100, 200, 750, 1,500) are bearer bonds.
Registered Bond
A prize bond registered to your CNIC. Only the registered owner can claim prizes. Premium bonds (Rs. 25,000 and Rs. 40,000) are registered bonds.
Series
Each denomination has a series of 1,000,000 bonds. Multiple series are in circulation. When a draw is held, prizes are awarded per series.
Qura Andazi
The Urdu term for a prize bond draw. Literally means "casting lots." Each draw is held in a specific city and results are published the same day.
First Prize
The highest prize in each draw. Only 1 bond per series wins the first prize. Amounts range from Rs. 700,000 (Rs. 100 bond) to Rs. 80,000,000 (Rs. 40,000 Premium).
CDNS
Central Directorate of National Savings. The government body that manages prize bonds, savings certificates, and other National Savings instruments.
SBP BSC
State Bank of Pakistan Banking Services Corporation. The offices where you can buy bonds, claim prizes, and access National Savings services.
Premium Bond Profit
Premium bonds (Rs. 25,000 and Rs. 40,000) pay quarterly profit to your registered bank account regardless of whether you win a prize. This is on top of the prize draw entries.
Denomination
The face value of a prize bond. Pakistan currently has six active denominations: Rs. 100, 200, 750, 1,500, 25,000 Premium, and 40,000 Premium.
Withholding Tax
Tax deducted at source when you claim a prize. Currently 15 percent for active taxpayers (filers) and 30 percent for non-filers.
The Bottom Line
Prize bonds are one of the simplest and safest savings instruments available in Pakistan. Your principal is always protected, there are no ongoing fees, and you get unlimited chances to win cash prizes for as long as you hold the bond. The key is to start, be consistent, automate your checking so you never miss a win, and file your taxes so you keep more of your prize money. Whether you start with a single Rs. 100 bond or build a diversified portfolio of thousands, the fundamentals are the same.