PESHAWAR – Khyber Pakhtunkhwa administration has taken major step towards cashless economy by approving Digital Payments Act 2025, making it first province in Pakistan to establish a legal framework for digital transactions.
The bill, approved by Chief Minister Sohail Afridi, will now be sent for cabinet approval. Under the new law, digital payments via QR codes will be mandatory in government, business, and service sectors. Registered businesses will enjoy a two-year exemption from the new sales tax on digital transactions.
The law also restricts charging customers extra fees for using digital payments, with non-compliant businesses facing legal consequences. Officials say the move will enhance transparency, convenience, and financial security while safeguarding consumer and business data.
To support digital adoption, the government plans to provide public Wi-Fi and other digital services in marketplaces, include digital literacy in school curricula, and simplify onboarding processes for businesses.
Chief Minister Sohail Afridi said KP aims to serve as a model for a cashless economy, offering guidance to the federal government and other provinces. He described the legislation as a key milestone for financial inclusion, transparency, and economic modernization.
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