KP assembly passes Digital Payment Act 2026 to push province toward cashless economy

Profit by Pakistan Today reports that the Khyber-Pakhtunkhwa government has signed off on the Khyber-Pakhtunkhwa Promotion of Digital Payment Act 2026, a law meant to steer the province toward a cashless economy. Provincial Law Minister Aftab Alam tabled the bill in the house on Friday. Officials say the measure will improve transparency and widen electronic transactions.

Under the law, businesses across the province must accept digital payments and put QR codes in retail outlets and commercial buildings. Schools, clinics and hospitals will also need to provide electronic payment options. Merchants may not charge customers extra for paying digitally, and those who refuse digital payments face fines. Monitoring officers will be able to inspect business premises whenever they choose.

Businesses registered recently will get two years of tax relief, while banks and digital payment providers must offer technical assistance. The government says the goal is greater openness, more digital transactions and a shift by residents to cashless payments.