Pakhtunkhwa government has introduced a new law aimed at accelerating the shift toward a cashless economy by making digital payments mandatory for businesses across the province.
The proposed legislation, titled the Digital Payment Act 2026, was presented in the provincial assembly by Law Minister Aftab Alam. The bill seeks to expand digital financial systems and promote electronic transactions in both urban and rural areas.
Under the proposed law, all businesses including shops, commercial outlets, educational institutions, clinics, and hospitals will be required to adopt digital payment methods.
Businesses must also display QR codes to facilitate customer payments, ensuring easy and secure transactions. The legislation clearly states that no additional charges can be imposed on customers using digital payment methods.
To ensure compliance, the government plans to appoint authorized monitoring officers who will conduct inspections at business premises. Penalties have been proposed for those who fail to implement the required systems.
Officials believe that QR-based payments will improve financial transparency, reduce undocumented transactions, and strengthen accountability within the economy.
To ease the transition, newly registered businesses will be offered tax relief for a period of two years. Additionally, banks and service providers will be responsible for providing technical support to help businesses adopt digital payment solutions.
Authorities say the initiative will simplify payment processes, reduce reliance on cash, and modernize the province’s financial ecosystem, benefiting both consumers and businesses alike.
