The Khyber Pakhtunkhwa (KP) government has announced a landmark digital transformation, mandating that all person-to-government (P2G) payments transition to a completely cashless mode by September 1, 2026.
With this move, KP aims to become the first province in Pakistan to adopt a fully digital receipt system. Senior officials leading the reform program anticipate that the shift will eliminate human interaction in financial transactions, reducing leakage and raising additional annual revenue by nearly 70 percent, an estimated increase of over Rs29 billion.
“We are close to achieving our target and setting a benchmark for every province in Pakistan,” a senior official told Dawn. The government has already digitized 148 public services and plans to complete the digitization of all 172 services within the next few months.
The initiative centers on the “Mahasil” (revenue) app, which integrates existing online payment platforms with a dedicated gateway.
This system allows citizens to pay service fees, fines, and license costs directly into the provincial treasury using QR codes and digital platforms like Raast and 1-Go.
To ensure legal compliance, the provincial government is currently amending finance rules through the Finance Act, 2026.
Recent data highlights the success of early digitization efforts. For instance, arms license revenue surged from Rs1.45 billion in 2022 to Rs2.50 billion in 2025 following digital implementation.
Similarly, the collection of fines by assistant commissioners saw a 69 percent increase after transitioning from manual to digital receipts.
The government also plans to extend this model to over 600 non-account-1 services provided by autonomous bodies, local governments, and corporations, further solidifying the province’s transition toward a transparent, digital-first economy.
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