KP prepares law to promote cashless economy

PESHAWAR: The Khyber-Pakhtunkhwa (KP) government has drafted legislation aimed at transforming the province into a cashless economy through the proposed ‘Khyber-Pakhtunkhwa Digital Payment Act 2026’.

Under the draft law, all businesses across the province would be required to adopt digital payment systems, displaying QR codes at shops and commercial centers to facilitate transactions. Educational institutions, clinics, and hospitals would also be mandated to accept digital payments, with customers protected from additional charges for using these services.

The legislation specifies penalties for businesses that refuse to comply and authorizes monitoring officers to inspect business premises at any time to ensure adherence. The use of QR codes is expected to enhance transparency and contribute to strengthening the provincial economy.

The bill also includes incentives for newly registered businesses, offering tax exemptions for two years to encourage digital adoption. Banks and service providers will be obliged to provide technical support, while the provincial government plans public awareness initiatives to promote the shift toward a cashless economy.

Law Minister Aftab Alam presented the bill during a previous assembly session. The legislation is currently awaiting approval by the provincial assembly.