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PESHAWAR: In a significant regulatory update, the Khyber Pakhtunkhwa (KP) Culture & Tourism Authority officially blacklisted a private bank for business guarantee deposits, prohibiting travel and tour operators from using the bank to secure permits and comply with licensing requirements.
An official notice from the Tourist Services Wing ordered all registered travel agents and tour operators to immediately stop depositing business or cash guarantees with the private bank. The notice was later on suspended.
The directive included the cancellation of all existing business guarantee deposits with the private bank, whether cash or otherwise. Operators must collect their cancelled guarantees in person from the KP Culture & Tourism Authority office in Peshawar without paying any administrative charges.
Legal Framework and Future Compliance
The decision was made under Section 73 of the KP Hospitality & Tourism Sector Regulation 2021, which authorizes the Authority to approve or revoke financial institutions eligible to hold the mandatory Business Guarantee Fund.
The move impacts hundreds of tour operators across KP. Many are now urgently seeking alternative approved banks to ensure regulatory compliance and maintain uninterrupted operations.
Arshad Khan, who runs a local tour agency, voiced concerns:
“We submitted our guarantee just last month. Now we have to rearrange everything quickly to avoid losing our license.”
The Authority emphasized the decision aims to uphold financial transparency and reduce systemic risk in the tourism sector.
