The Khyber Pakhtunkhwa government is set to introduce a dedicated law granting formal legal protection to an estimated 140,000 street vendors across the province, aiming to regulate and safeguard a street economy valued at Rs380 billion.
Chief Minister Muhammad Sohail Afridi said the draft of the Khyber Pakhtunkhwa Ehsaas Rehribaan (Street Vendors) Livelihood Protection Bill 2025 has been completed and will be sent to the provincial cabinet for approval before being presented to the KP Assembly.
Once enacted, KP will become the first province to make street vendors’ rights a permanent part of provincial law. The government intends to formalise the sector, prevent unlawful displacement and curb extortion practices that street vendors commonly face.
According to the chief minister, the bill bars government officials, police or private individuals from forcibly seizing vending spaces, displacing vendors or demanding illegal payments. Intimidation, coercion and rent-seeking will be treated as criminal offences under the proposed law.
A key feature of the legislation is due-process protection. No anti-encroachment action will be allowed against registered vendors without prior notice, evidence-based justification and compliance with legal procedures.
Beyond legal safeguards, the bill proposes access to microfinance, credit, insurance and emergency support to help street vendors integrate into the formal economy. The government says such measures are essential for improving income security and reducing poverty.
The draft law also mandates vendor representation in Tehsil Vending Committees, ensuring that decisions affecting vending zones and operations include input from those directly impacted.
The provincial government views the initiative as a major step toward creating a more organised and stable street economy while strengthening protections for low-income workers across Khyber Pakhtunkhwa.
