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PESHAWAR, Nov 22 (APP):Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi has approved the landmark “Khyber Pakhtunkhwa Digital Payments Act 2025,” marking it a major step toward establishing a modern and transparent economic structure in the province.
The bill would be presented before the provincial cabinet for formal approval. With this initiative, KP has become the first province in Pakistan to introduce a comprehensive legal framework aimed at advancing the digital economy.
In a release issued here Saturday, 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 would 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 would be treated as a violation of the law, he said adding that the legislation seeks to promote financial inclusion, reduce reliance on cash and modernize the provincial economy.
KP CM clarified that robust protections for both consumer and business data have been ensured while the entire digital transaction ecosystem would conform to international standards. In order to facilitate the public, he said that the provincial government would introduce public Wi-Fi and other digital services in markets and commercial zones.
He mentioned that KP is poised to become Pakistan’s first cashless model economy offering a blueprint for other provinces to follow. He said that a modern digital payments system is an essential requirement of the contemporary era and its implementation would not only create ease for citizens and businesses but it would also serve as a milestone in improving overall governance.
He emphasized that the promotion of digital payments would reduce opportunities for corruption, stabilize revenue collection, support data-driven policymaking, enhance institutional performance and strengthen public trust in government institutions.