The Khyber Pakhtunkhwa government has approved the Khyber Pakhtunkhwa Promotion of Digital Payment Act 2026, a law designed to expand digital transactions and move the province towards a cashless economy.
Provincial Law Minister Aftab Alam introduced the bill in the provincial assembly on Friday.
Under the new law, businesses across Khyber Pakhtunkhwa will be required to facilitate digital payments and display QR codes at shops and commercial centres. Educational institutions, clinics and hospitals will also be required to offer digital payment options to the public.
The law bars businesses from charging customers extra for using digital payment methods. Businesses that refuse to accept digital payments will face fines. Monitoring officers have been given authority to inspect business premises at any time to ensure compliance.
To encourage adoption, newly registered businesses will receive tax relief for two years. Banks and digital payment service providers will be required to offer technical assistance to businesses transitioning to digital systems.
According to the provincial government, the law is intended to promote transparency in transactions, broaden the use of digital payments and reduce reliance on cash across the province.
