KP Approves Digital Payments Act 2025, Sets Course for Pakistan’s First Cashless Provincial Economy

Independent Report
Peshawar | November 22, 2025

The Khyber Pakhtunkhwa government has approved the Digital Payments Act 2025 in a landmark move to accelerate the province’s transition toward a digital economy. The bill has been forwarded to the provincial cabinet for final approval.

Chief Minister Soheil Afridi said KP is now the first province in Pakistan to introduce a comprehensive legal framework dedicated to supporting digital economic activity. Under the proposed law, digital payments through QR codes will be mandatory across government departments, businesses, and service sectors.

Afridi stated that newly registered businesses will be exempt from any additional sales tax on digital payments for two years, encouraging rapid adoption. Charging extra fees on digital transactions will be prohibited, and refusal to accept digital payments will be treated as a legal violation.

The chief minister added that the legislation aims to improve transparency, user convenience, and financial security while strengthening financial inclusion and modernizing the provincial economy. Data privacy protections for consumers and businesses have also been built into the framework.

To support public accessibility, the government will introduce public Wi-Fi zones in markets and expand digital service facilities, while financial and digital literacy will be incorporated into the education curriculum to ensure district-level implementation and onboarding.

Afridi said KP aims to become Pakistan’s model cashless economy, offering a roadmap for federal and provincial governments seeking digital transformation.