Govt Increases Fines on Hotels and Restaurants by 50-Fold

Meanwhile, the administration has moved to sharply rise penalties for hotels and restaurants in Islamabad, with some fines rising by as much as 50 times under newly approved legislation.

Key points

• The National Assembly passed the Pakistan Hotels and Restaurants (Amendment) Bill, 2026.
• The amendment additionally allows these penalties to be climbed going forward while taking into account the Consumer Cost Index (CPI) or inflation, subject to prescribed rules.
• Under the existing law, an establishment needs at least 10 lettable bedrooms to fall within the definition of a hotel.
• The changes apply specifically to the Islamabad Capital Territory and should not be interpreted as a nationwide growth in hotel and restaurant penalties.
• One of the biggest changes reservations hotels and restaurants that fail to apply for registration within the required period.

Notably, the National Assembly passed the Pakistan Hotels and Restaurants (Amendment) Bill, 2026. The Senate had already passed the bill on June 10, 2026. The legislation amends the Pakistan Hotels and Restaurants Act, 1976 to the extent of the Islamabad Capital Territory (ICT). Islamabad Announces Free Scooty Riding Training Program for Women.

One of the biggest changes reservations hotels and restaurants that fail to apply for registration within the required period. The maximum penalty for this violation has been rose from Rs. 5, 000 to Rs. 250, 000, representing a 50-fold growth.

For context, the daily penalty for continuing the same violation has additionally been climbed from Rs. 1, 000 to Rs. 10, 000. Old and New Fines. Violation Old Fine New Fine.

Failure to apply for registration Up to Rs. 5, 000 Up to Rs. 250, 000.

Continuing failure to register Up to Rs. 1, 000 per day Up to Rs. 10, 000 per day.

Serving harmful or contaminated food or using contaminated utensils Up to Rs. 1, 000 Up to Rs. 10, 000.

Failure to follow an order or direction issued under the law Up to Rs. 1, 000 Up to Rs. 10, 000.

Charging above approved fair rates, first offence Up to Rs. 1, 000 Up to Rs. 10, 000.

Unregistered restaurant failing to comply with a directive Up to Rs. 5, 000 Up to Rs. 125, 000.

Unlicensed hotel or restaurant improperly advertising itself or using a star sign Up to Rs. 1, 000 Up to Rs. 10, 000.

Continuing improper advertising or employ of star classification Up to Rs. 200 per day Up to Rs. 2, 000 per day. CDA Seals Offices of 9 Illegal Housing Schemes in Islamabad.

Notably, the amendment additionally allows these penalties to be climbed going forward while taking into account the Consumer Cost Index (CPI) or inflation, subject to prescribed rules. Smaller Hotels Will Additionally Come Under Regulation.

In practice, the bill makes another major change by expanding the legal definition of a hotel.

Under the existing law, an establishment needs at least 10 lettable bedrooms to fall within the definition of a hotel. The amendment reduces this threshold to just five rooms. This could bring smaller hotels and accommodation businesses in Islamabad under the registration and regulatory framework.

Notably, the legislation additionally adds environmental hazards and earthquakes to the factors considered under hotel registration requirements.

Authorities will additionally receive explicit power to seal premises through departmental staff, with assistance from the local administration and police as part of the enforcement measures available under the law. Mohsin Naqvi Announces Manhattan-Style City in Islamabad.

According to the bill's statement of objects and reasons, the amendments are intended to update regulatory authority and revise penalties under the decades-old law. The Senate Standing Committee had earlier remarked the higher penalties were aimed at improving deterrence and ensuring stricter compliance in the tourism and hospitality sector.

In practice, the changes apply specifically to the Islamabad Capital Territory and should not be interpreted as a nationwide growth in hotel and restaurant penalties. Stay Connected with ProPakistani. Obtain the latest news and stories wherever you prefer. Follow on Google Discover. Follow on Google News Join WhatsApp. See more ProPakistani stories in Google Search and Top Stories.

Taken together, the developments around govt Increases Fines on Hotels and Restaurants by 50 point to a situation that is still moving, and the coming days should bring more clarity.