The government of Khyber Pakhtunkhwa has taken a significant step toward digitizing its economy by introducing the Digital Payment Act 2026 in the provincial assembly.
The proposed legislation was presented by Provincial Law Minister Aftab Alam, aiming to expand digital financial systems and encourage cashless transactions across the province.
Businesses required to adopt digital payments
Under the proposed law, all businesses, including shops, commercial outlets, educational institutions, clinics, and hospitals, will be required to adopt digital payment methods.
Businesses will also have to display QR codes to facilitate electronic payments for customers. The bill further states that extra charges on digital payments will not be allowed.
Monitoring and penalties for non-compliance
The legislation proposes penalties for non-compliance, while authorized monitoring officers will have the power to conduct inspections at business premises to ensure adherence to the new rules.
Officials believe the use of QR-based payment systems will enhance financial transparency and accountability.
Tax relief and technical support
To support the transition, newly registered businesses will receive tax relief for two years. Banks and service providers will also be responsible for offering technical assistance to help businesses implement digital payment systems.
Authorities say the initiative will simplify payment processes, reduce reliance on cash, and strengthen financial transparency, benefiting both consumers and businesses across the province.
