KPK Introduces Digital Payment Act 2026 for Cashless Economy

Khyber Pakhtunkhwa government presents Digital Payment Act 2026

The Khyber Pakhtunkhwa provincial assembly has been presented with the Digital Payment Act 2026, marking a significant step towards creating a cashless economy. Introduced by Provincial Law Minister Aftab Alam, the bill mandates all businesses in the province to implement digital payment systems.

Under the proposed law, shops, commercial centers, educational institutions, clinics, and hospitals will be required to accept digital payments and display QR codes for customer convenience. Businesses are prohibited from charging additional fees for digital transactions.

Non-compliance with the digital payment system could result in penalties, while the tracking of QR codes is expected to enhance economic transparency. Monitoring officers have been authorized to inspect business centers at any time to ensure compliance.

Newly registered businesses will receive a two-year tax incentive, and banks and service providers are required to provide technical support for smooth implementation. The provincial government aims to encourage citizens to adopt cashless transactions, modernize the economy, and promote accountability across commercial and public sectors. Officials stated that the law would streamline payment systems, reduce cash dependency, and strengthen transparency, making it easier for both consumers and businesses to operate efficiently in Khyber Pakhtunkhwa.