KP’s 2026 digital payment bill is a step toward a cashless future.

The “Khyber Pakhtunkhwa Digital Payment Act 2026” is a piece of legislation that the Khyber Pakhtunkhwa administration has developed to turn the province into a cashless economy.

In order to ease transactions, the proposed regulation would mandate all companies in the province to use digital payment systems and display QR codes in stores and commercial hubs.

The draft measure mandates that hospitals, clinics, and educational institutions accept digital payments; users will not be charged extra for doing so.

The law also stipulates that companies that refuse to take digital payments will be penalised and that employing QR codes will boost the economy and encourage openness.

Monitoring officials will have the right to check business locations at any moment to make sure the law is being followed. Additionally, there will be a two-year tax exemption for newly registered firms.

The provincial government will take action to encourage individuals to transition to a cashless economy, and banks and service providers will be obliged to give technical assistance.

Law Minister Aftab Alam introduced the law in the previous session of the provincial legislature, and it is currently awaiting approval.