PESHAWAR: Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi has approved the “Khyber Pakhtunkhwa Digital Payments Act 2025,” marking a major step toward establishing a modern and transparent economic structure in the province.
The bill will be presented before the provincial cabinet for formal approval. With this initiative, Khyber Pakhtunkhwa has become the first province in Pakistan to introduce a comprehensive legal framework aimed at advancing the digital economy.
The Chief Minister stated that under the new law, payment systems across government departments, businesses, and the service sector will be made through a mandatory QR code based digital payments. He said the adoption of digital transactions will significantly enhance transparency, financial security, and public convenience.
Moreover, for a period of two (2) years from the commencement of the Act, digital payments received by a previously undocumented business entity through a QR Code, registered under this Act, shall not constitute a basis for the imposition of any new direct sales tax liability, so as to encourage formalization, whereas refusal to accept digital payments or imposing additional charges on such transactions will be treated as a violation of the law. The legislation seeks to promote financial inclusion, reduce reliance on cash, and modernize the provincial economy.
The Chief Minister clarified that robust protections for both consumer and business data have been ensured, while the entire digital transaction ecosystem will conform to international standards. In order to facilitate the public, he said that the provincial government will introduce public Wi-Fi and other digital services in markets and commercial zones.
Additionally, the government will integrate financial and digital literacy into the academic curriculum, while strengthening district-level mechanisms to ensure effective implementation of the law, comprehensive training, and the seamless on boarding of the business community.
The Chief Minister emphasized that Khyber Pakhtunkhwa is poised to become Pakistan’s first cashless model economy, offering a blueprint for the federal government and other provinces to follow.
He said that a modern digital payments system is an essential requirement of the contemporary era, and its implementation will not only create ease for citizens and businesses but will also serve as a milestone in improving overall governance.
He emphasized that the promotion of digital payments will reduce opportunities for corruption, stabilize revenue collection, support data-driven policymaking, enhance institutional performance, and most importantly, strengthen public trust in government institutions.
Copyright Business Recorder, 2025
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