The Khyber Pakhtunkhwa (KP) government has announced a major digital governance initiative, mandating that all person-to-government (P2G) payments be made through cashless channels from September 1, 2026.
The move is part of the provincial government’s broader strategy to modernize public services, improve transparency, and increase revenue collection through digital technology. Once implemented, KP will become the first province in Pakistan to operate a fully digital receipt system for government payments.
Officials overseeing the reform program say the transition is expected to significantly reduce financial leakages by eliminating direct human involvement in payment collection processes. The government estimates that the initiative could boost annual revenue by nearly 70 percent, generating more than Rs29 billion in additional income.
“We are close to achieving our target and setting a benchmark for every province in Pakistan,” a senior government official told local media.
The province has already digitized 148 public services and plans to complete the digitization of all 172 government services in the coming months. The transformation is being driven through the “Mahasil” revenue application, which integrates existing digital payment platforms with a dedicated payment gateway.
Under the new system, citizens will be able to pay government fees, fines, permits, and licensing charges directly into the provincial treasury using QR codes and digital payment solutions such as Raast and 1-Link-enabled banking services.
To support the transition, the provincial government is introducing amendments to financial regulations through the Finance Act 2026, ensuring legal backing for fully digital transactions.
Officials point to strong results from previous digitization efforts. Revenue generated from arms licenses increased from Rs1.45 billion in 2022 to Rs2.50 billion in 2025 after digital payment systems were introduced. Likewise, collections from fines imposed by assistant commissioners rose by 69 percent following the shift from manual receipts to digital records.
The government also plans to expand the digital payment framework to more than 600 services operated by autonomous bodies, local governments, and public corporations, further strengthening KP’s vision of a transparent, efficient, and digital-first economy.
The initiative is expected to improve public service delivery, enhance accountability, and position Khyber Pakhtunkhwa as a leader in digital governance across Pakistan.
