The State Bank of Pakistan (SBP) has issued new instructions requiring commercial banks to settle all Premium Prize Bond (PPB) sales on a daily basis.
Under the updated framework, the SBP’s Banking Services Corporation will debit the accounts of participating banks based on the volume of sales reported by each institution on the same day.
The move shifts the settlement cycle for these government-backed instruments from a periodic or batch process to a real-time daily clearing mechanism.
This change aims to improve liquidity management and reduce settlement risk within the banking sector’s handling of state securities.
Premium Prize Bonds are a key component of Pakistan’s domestic debt market, offering investors a chance at prize winnings alongside a low base return.
They are widely held by retail investors and serve as a significant funding source for the government.