Authorities in Islamabad have sealed the outdoor sitting area of the popular Kabul Restaurant in the city’s upscale F-6 sector. The action followed allegations of tax evasion, refusal to adopt digital payments, and reported anti-Pakistan remarks by the restaurant’s Afghan staff.
According to officials, the Capital Development Authority (CDA) received several complaints accusing Kabul Restaurant of hiding taxable income and refusing to accept debit or credit cards. Instead, the restaurant allegedly insisted on cash payments to conceal daily earnings, which reportedly amount to hundreds of thousands of rupees.
Despite multiple warnings, the management continued to ignore government instructions. As a result, CDA enforcement teams sealed the restaurant’s open dining area for non-compliance with Islamabad’s cashless economy policy. The initiative aims to ensure tax transparency across restaurants and businesses in the capital.
CDA officials stated that all eateries and commercial outlets in Islamabad are now required to implement digital payment systems. They emphasized that the crackdown on Kabul Restaurant is part of a broader campaign to curb tax evasion and promote accountability in the hospitality sector.
The controversy intensified after a viral social media post by user Shahid Khan on platform X (formerly Twitter). Khan described a conversation with one of the restaurant’s Afghan employees, who reportedly said, “We don’t take cards because then Pakistan would take tax from us — why should we pay tax to Pakistan?”
The statement sparked outrage nationwide, with thousands questioning how a foreign-owned restaurant could operate in Pakistan’s capital while allegedly expressing hostility toward the country and avoiding taxes. Many users called for a public boycott of the restaurant, arguing that local businesses face far stricter enforcement.
Khan further claimed that Kabul Restaurant, despite its high prices and average food quality, makes millions monthly. He added that the restaurant charges a 10% “service fee” on cash bills while refusing to issue digital receipts.
Public anger continues to mount as authorities expand inspections of other restaurants to ensure digital payment compliance. Officials have warned that any business found violating tax laws will face similar actions, regardless of its popularity.
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The Kabul Restaurant case has become symbolic of a wider debate over financial transparency, foreign business operations, and accountability in Pakistan’s capital.
