LAHORE: The government can generate huge funds in the form of fee and income tax if it regularises the secondary market of prize bonds.

Prize bond scheme experts said the government should regularise the secondary market of prize bonds by issuing licences to bond dealers, which would generate huge funds in the form of licence fees and income tax every year.

On the other hand, the prize bond schemes could be promoted if the government withdrew 10 per cent withholding tax on bond prizes, the experts suggested.

Currently, they said, prize bonds bought 60 days prior to the draw date were included in the draw and that eligibility criterion should be reduced to 30 days so that maximum number of people could reap the benefits of prize bond schemes.

The industry experts said in order to increase the participation of people in the prize bond schemes the number of small prizes should be raised by reducing big prizes in the same proportion. They were of the view the government could facilitate overseas Pakistanis, housewives, sick and old people, special persons, children, etc by offering bond prizes at their doorsteps through the reintroduction of ‘Power of Attorney’ facility.

Despite prize bonds being a lawful source of extra income for the poor and middle-class people, they said, the scheme had been unfortunately ignored for the past several years.

For stocks, debentures and other government securities, they said, the secondary market was essential to keep them attractive and share the burden of government. Prize bonds were no exception as they played a vital role in pooling huge investments, particularly from overseas Pakistanis, in the current inflationary conditions in which everyone was groaning under the burden of high prices, they added.

If the government concentrated on these issues, the experts said, it would be in a better position to reduce its dependence on foreign lenders and could generate huge financing for its own people at the most economical rates. Besides these, it would also counter inflationary pressures in the longer run.