Khyber Pakhtunkhwa Becomes Pakistan’s First Province to Launch Full Digital Payments Law

CM Sohail Afridi Approves 2025 Act: QR-Code Payments Mandatory, No Extra Charges, Two-Year Tax Holiday for Compliant Businesses

Muhammad Kamran Akhtar
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Web Desk — November 22, 2025

Peshawar: Khyber Pakhtunkhwa has just made history. Chief Minister Sohail Afridi today green-lit the Digital Payments Act 2025, turning the province into Pakistan’s first region with a comprehensive legal framework mandating digital transactions across government, commerce, and services.

Key highlights of the groundbreaking law:

  • QR-code or digital payments become compulsory for all registered businesses and service providers
  • No extra surcharge allowed on digital transactions – violation will be punishable
  • Refusal to accept digital payment will be treated as a legal offence
  • Businesses that register and comply get a two-year sales tax exemption on digital revenue
  • Bill now heads to cabinet for final approval and immediate rollout

“This is a game-changer for transparency, financial inclusion, and modernising our economy,” CM Afridi declared, adding that the move will drastically cut cash dependency, curb tax evasion, and bring millions into the formal financial system.

The province is racing ahead of the federal government and other provinces, positioning KP as Pakistan’s digital economy pioneer. Implementation guidelines and registration portals are expected within weeks.

Cash may soon be history in the land of the Pashtuns.

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