Government Prize Bonds Halal?
With due respect, I disagree with you, and I would be deeply grateful if you could clarify my confusion regarding the specific mechanics of this state system, as I feel my core points require a more nuanced legal examination. The fundamental definition of gambling (Maysir/Qimar) in Islamic jurisprudence requires the presence of a wager where a person puts their wealth at risk, they will either win at the expense of others or lose their capital entirely. However, in the case of Premium Prize Bonds, the principal amount is completely secure. Even after ten years, if my bond is not drawn, I can surrender it and reclaim my entire initial investment. Since there is zero risk of losing my original input, the foundational condition of gambling, staking capital at the risk of absolute loss appears to be fundamentally absent. Furthermore, regarding the concept of “easy money,” your previous response mentioned that acquiring wealth from others’ income without offering anything in return constitutes gambling. Yet, Shariah recognizes several legitimate avenues for acquiring wealth without reciprocal labor or physical effort, such as receiving an inheritance, being given a financial gift (Hiba), or finding permissible treasure (Rikaz). Therefore, the mere acquisition of effortless wealth cannot be the sole metric for declaring a transaction as gambling, provided the initial transaction did not involve impermissible risk. Additionally, this mechanism operates very differently from a traditional commercial bank loan designed for wealth extraction. It functions as a state-managed fundraising pool for public development and national infrastructure. The prize money is not extracted through traditional usury; rather, the government allocates a specific incentive budget out of the overall public project’s cost to distribute as rewards to the citizens who facilitated the national development. Finally, when looking specifically at Premium Prize Bonds, the bi-annual profit provided is not rigidly fixed forever. It fluctuates and is revised periodically by the state according to the country’s macroeconomic conditions. Because this return is variable and tied to broader economic realities rather than being an absolute, predetermined fixed number, it distances itself from the rigid definition of traditional Riba. Given that the principal is guaranteed, the rewards come from a set national incentive budget rather than direct extraction, and the periodic profit rates fluctuate based on economic conditions, I humbly request you to re-evaluate whether there is room in Shariah to consider this permissible as a state-facilitated infrastructure initiative.