KP to become Pakistan’s first cashless economy with new digital payment system

Khyber Pakhtunkhwa (KP) is set to become Pakistan’s first province to adopt a fully cashless economy, with the launch of a universal digital payment system aimed at modernizing financial transactions across all sectors.

The "Cashless Khyber Pakhtunkhwa" initiative mandates that all public and private payments—from small business transactions to large-scale financial dealings—be conducted digitally. The provincial government has finalized a detailed implementation strategy, assigning specific responsibilities to various departments, institutions, and district administrations under strict timelines.

To ensure accessibility in remote areas, the system will function offline in collaboration with mobile wallet service providers. Additionally, the government will map all commercial entities, including small shops, street vendors, and village council stalls, integrating them into the new digital framework.

Chief Minister Ali Amin Gandapur has ordered the immediate rollout of the system, directing the Chief Secretary’s Office to oversee compliance. “KP will be the first province in Pakistan to introduce a cashless system,” Gandapur stated. “This initiative will help promote the digital economy, enhance financial transparency, and eliminate fraud and corruption.”

As part of the transformation, all businesses, public transport services, and commercial establishments will be required to display QR codes for digital payments. A regulatory framework will also be put in place to ensure effective enforcement.

To facilitate the transition, the KP government will launch public awareness campaigns, training programs, and support services for businesses and citizens. The initiative is expected to foster fintech solutions, improve economic security, enhance 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,” Gandapur added.