PESHAWAR: The Khyber Pakhtunkhwa (KP) Assembly has passed the Street Vendors Protection Bill 2026.
The new law makes Registration and vending certificates mandatory for street vendors across the province.
Under the legislation, people aged 14 years or above can apply for Registration as street vendors. Registered vendors will receive a digital vending certificate.
The certificate will include a QR code for verification and identification. It will provide vendors with official recognition under the new legal framework.
Authorities can suspend or cancel a vending certificate under certain conditions. These include providing false information or violating the prescribed rules.
However, vendors will have the right to appeal against suspension or cancellation decisions. This provision gives vendors a legal option to challenge administrative actions.
The new legislation is expected to protect more than 140,000 street vendors across Khyber Pakhtunkhwa. It aims to protect them from unjust harassment and forced eviction.
The bill also introduces penalties for the misuse of vending certificates. Selling or transferring a certificate will carry a fine of up to Rs. 3,000.
Authorities can also take action against illegal encroachments by vendors. Violations of cleanliness requirements may also result in enforcement action.
The law further restricts vendors from selling prohibited items. Officials will be able to act against vendors who violate these provisions.
The legislation also addresses harassment of street vendors. Government officials found responsible for harassment may face departmental action.
Shopkeepers or citizens involved in harassment could face strict penalties. They may receive a fine of Rs. 20,000 or imprisonment for up to one month.
According to the bill, street vendors make a significant contribution to the provincial economy. More than 140,000 vendors operate businesses across Khyber Pakhtunkhwa.
Their combined business activity is estimated at more than Rs. 380 billion annually. The sector also contributes around Rs. 130 billion to the national economy each year.
The government expects better regulation to increase revenue from the sector. Annual revenue could rise by an estimated Rs. 2.5 billion to Rs. 5 billion.
The law aims to balance vendor protection with public order and cleanliness. It also provides a structured system for managing street vending activities.
The Registration system will help authorities maintain official records of street vendors. Digital certificates could also make verification easier during inspections.
The legislation marks the first comprehensive legal framework for street vendors at the local government level in Khyber Pakhtunkhwa.
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The new framework is expected to bring greater legal recognition to street vendors. It also establishes clear responsibilities, protections, and penalties for the sector.
