The federal government extended the redemption date and return of unregistered 40,000 rupee bonds by six months on Tuesday.
The Treasury announced that Rs 40,000 in premium bonds could be redeemed and returned by December 31, 2020.
However, the procedure for redemption and redemption of these bonds remains unchanged.
Last month, the State Bank of Pakistan (SBP) ordered all commercial banks to stop selling 40,000 rupees from June 24.
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The federal government assigned bondholders over a nine-month period a face value of 40,000 rupees to convert their savings instruments into cash or other securities to address the concerns of the Financial Action Task Force (FATF).
The Rs 40,000 bond is a price bond with the highest face value of a total of eight denominations and ranges from Rs 100 to Rs 40,000. There was a starting price of Rs 75 million for bonds with a nominal value of Rs 40,000.
The move will also address concerns of global watchdogs suspected of parking black money through these bonds. Pakistan is currently on the FATF negative list.
Pakistanis have invested over Rs 950 billion in all types of prize bonds, and more than a quarter of the total investment was in bonds with a face value of Rs. 40,000. These prize bonds were used to spice up black money and are still the leading cause of corruption and tax evasion in the country.
The government launched the premium bond of Rs 40,000 (registered) and these bonds could be converted into registered bonds with a nominal value of Rs 40,000.
The Treasury said that the registered interest rate bonds not only offer attractive prices through quarterly movements, but also yield a reasonable profit through coupon payments every six months.
The registered bonds are safe and not subject to counterfeiting and theft. The financial department has already stopped issuing carrier bonds for an amount of 40,000 rupees as of this year.
The government decided to freeze the sale of these instruments after claiming that huge amounts of black money were used to buy these bonds, as they also offered millions of prize money.
