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Wednesday May 05 2021
Web Desk

Govt's move to discontinue Rs7,500 prize bonds challenged at LHC

Web Desk
A picture of various government issued prize bonds. Photo: File

  • Justice Jawad Hassan to preside over prize bond hearing today.
  • Federal government had earlier announced that it would discontinue the Rs7,500 prize bonds.
  • Petition seeks government's move to be declared void.

LAHORE: The federal government's decision to ban the sale and purchase and draw of Rs7,500 prize bonds has been challenged at the Lahore High Court, according to a report in Jang

Read more: Rs15,000, Rs7,500 prize bond to be discontinued: notification

Justice Jawad Hassan will preside over the hearing, which has been scheduled for today.

The petitioner, Anwar Ali Sanga, has made the federal government and the Governor State Bank of Pakistan (SBP) Dr Reza Baqir parties to the case.

The petition filed at the LHC states that a draw of the prize bonds was supposed to be held on May 3. However, on April 28, the SBP had issued a notification in which it banned the buying and selling of prize bonds as well as its sale and purchase.

The petitioner maintained that the ban was an illegal move and a discriminatory act hence it should be declared void.

Last month, a notification by the federal government said announced draws for Rs15,000 and Rs7,500 prize bonds would not be held.

The government had said Rs 15,000 bonds will no longer be cashable after June 30 and the Rs7,500 bonds can only be encashed till December 31.

The notification stated that people who do not wish to cash the bonds can pay an additional amount and convert them into Rs25,000 and Rs40,000 bonds. It also stated that the users can convert those bonds into special savings and defence saving certificates.

The government had said the prize bonds can be encashed by people via their bank accounts.