Title

I have heard/read that prize bond is not halal. A prize bond is a piece of paper issued by my govt. (ISLAMIC REPUBLIC OF PAKISTAN). It is purchased from them and then a

Question

Just wanted to ask whether checking prize bonds is halal or not?

I have heard/read that prize bond is not halal. A prize bond is a piece of paper issued by my govt. (ISLAMIC REPUBLIC OF PAKISTAN). It is purchased from them and then a person gets prize every month or so depending on his luck from a lucky draw depending on his luck. A person might get the prize and might not get the prize.

My father has got them and he asks me to check them whether he has won the prize or not for him.

Will there be sin on me for  checking the bonds?

Any help would be highly appreciated.

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh  

At the outset, it should be noted that it is impermissible to invest in in’ami bonds. You should with utmost respect and honour try to explain to your father that it is impermissible. You could also ask an Aalim or senior member of your family or community to speak to your father.

It will be permissible to check whether your father won the bond or not.

Below is a recent fatwa issued by us to a similar query regarding In’ami bonds.

You have likened the In’aami bond of Pakistan to the Premium bond of England. As far as the In’aami bond, also known as Prize bond is concerned, it consists of two elements that render it impermissible, namely gambling and interest. If they are interest free, they are still impermissible for the following two reasons:

1. It involves gambling, which Islam forbids. The bond monies are either invested or given on interest bearing loans. The profits accrued there from are collected in a draw. Whoever’s bond number appears in the draw becomes entitled to the money. This is a gamble and is impermissible.

2. In’aami bonds could be classified as a partnership, as bond monies are jointly collected and invested, which makes all those that purchased bonds partners in the item invested. The principle in partnership is that all partners share in the profit of the investment in proportion to their contribution. In In’aami bonds, though they are partners, they do not share in the profit accrued from the investment, rather the monies are put in a draw and the one whose bond number appears in the draw becomes entitled to the money whilst the others are deprived of their monies. This is against the principle of a partnership and thus impermissible. (Refer to Aap Ke Masaail, vol 6, pg 272, Maktaba Bayyinaat)

 The late Grand Mufti of Pakistan, Mufti Rashid Ludhyani (Rahimahullah) had ruled In’aami bonds as Haraam and impermissible. (Ahsan Al- Fatawaa, vol 7, pg 26, HM Sa’eed)

We are unaware of the operational system of Premium bonds in England and thus unable to issue a ruling. We would appreciate if the contract of the premium bond scheme in England be forwarded to us for our review.

And Allah Ta’ala Knows Best

And Allah knows best

Wassalamu Alaikum

Ml. Ishaq E. Moosa,
Student Darul Iftaa

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa