Khyber Pakhtunkhwa aims to become Pakistan’s first province with universal digital payment system

PESHAWAR: The provincial administration of Khyber Pakhtunkhwa (KP) said on Wednesday it has prepared a strategy to roll out a universal digital payment system, making it the first province in Pakistan to introduce a cashless economy for business and financial transactions.
The “Cashless Khyber Pakhtunkhwa” initiative aims to modernize financial transactions by requiring all public and private payments, including small and large-scale business transactions, to be conducted digitally.
The strategy includes a phased implementation plan, with various government departments, institutions and district administrations assigned specific responsibilities under defined timelines.
The system, developed in partnership with mobile wallet service providers, will also work offline to ensure accessibility in remote areas.
“The province has decided to launch a universal digital payment system for all types of transactions and business payments,” the KP government said in a statement, adding that a detailed implementation strategy had been finalized.
The system will require all businesses — small and large — as well as private and government transactions to shift to digital payments.
As part of the initiative, the government will collect data on all commercial entities, including small shops, stalls and street vendors at the village council level, ensuring that they are integrated into the new digital framework.
The statement said Chief Minister Ali Amin Gandapur has issued directives for the immediate implementation of the system and instructed the Chief Secretary’s Office to oversee compliance.
“KP will be the first province in Pakistan to introduce a cashless system,” Gandapur said. “This initiative will help promote the digital economy, enhance financial transparency and eliminate fraud and corruption.”
Under the Cashless Khyber Pakhtunkhwa program, all businesses, public transport services and commercial establishments will be required to display QR codes for digital payments. A strong regulatory framework will be enforced to ensure effective implementation.
The KP administration has also planned public awareness campaigns, training programs and support services to help businesses and citizens transition to the new system.
Gandapur said the digital payment system will not only promote fintech solutions and improve economic security but also facilitate better tax collection and create a business-friendly environment in the province.
“The introduction of a digital payment system will encourage private investment and align KP with international digital financial standards,” he added.