ISLAMABAD – Authorities in Pakistan’s capital sealed the outdoor sitting area of Kabul Restaurant in upscale F-6 sector. The action was taken over tax evasion, refusal to adopt the government’s digital payment system, and alleged anti-Pakistan remarks made by the restaurant’s Afghan staff.
According to details, the Capital Development Authority (CDA) took notice of multiple citizen complaints accusing Kabul Restaurant of deliberately hiding taxable income. The restaurant had been refusing to accept debit or credit card payments, insisting instead on cash transactions only, a tactic allegedly used to conceal daily earnings that reportedly reach into hundreds of thousands of rupees.
Despite repeated warnings, Kabul restaurant’s management continued to defy government directives. As a result, CDA enforcement teams carried out an operation and sealed the restaurant’s open dining area for non-compliance with Islamabad’s cashless economy initiative, which aims to ensure tax transparency across commercial sectors.
CDA officials confirmed that under government policy, all restaurants and business outlets in Islamabad are required to adopt digital payment systems. The crackdown, they said, is part of a wider effort to curb tax evasion and promote transparency in the hospitality industry. “No business will be allowed to operate outside the digital and tax framework,” a senior official stated.
The scandal took far more explosive turn after social media post by user Shahid Khan went viral on platform X (formerly Twitter). Khan revealed a shocking encounter with one of the restaurant’s Afghan staff members. “One of them thought from my accent that I was an Afghan from Khost,” Shahid wrote. “When I asked why they don’t take cards and insist on cash, he said, ‘Because then Pakistan would take tax from us — why should we pay tax to Pakistan?’”
The post even triggered nationwide outrage, with thousands questioning how a foreign-owned restaurant could operate in the heart of Pakistan’s capital while openly refusing to pay taxes, and allegedly expressing hostility toward Pakistan.
Shahid further described the restaurant’s exploitative practices, “Kabul Restaurant, located in Islamabad’s F-6 center, is always packed. They make millions every month. Even though the food was tasteless, the bill for three or four people easily comes to eight to ten thousand rupees. They only take cash and even add a 10% ‘service charge’ claiming it’s the cost of bringing food to your table. In the heart of Pakistan, these Afghans are minting money while hating Pakistan and refusing to pay taxes.”
The user ended with a stinging question that quickly became a rallying cry online; “Can Pakistanis boycott Kabul Restaurant? And could any Pakistani open an ‘Islamabad Restaurant’ in Kabul and boldly say, ‘I won’t pay tax to Afghanistan’?”
Public anger continues to rise as Islamabad authorities intensify monitoring of other restaurants and businesses to ensure compliance with the digital and cashless system. Officials warn that any establishment caught violating these rules, regardless of its popularity or ownership, will face similar sealing or legal action.
Kabul Restaurant saga has become a symbol of a larger debate — about foreign businesses exploiting Pakistan’s markets while evading tax laws, and the urgent need to enforce financial accountability in the nation’s capital.
As the controversy deepens, Islamabad’s residents are left asking: how many more “Kabul Restaurants” are hiding in plain sight?
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