Govt Increases Fines on Hotels and Restaurants by 50-Fold

The Pakistani government recently approved legislation that sharply raises fines for hotels and restaurants in Islamabad, with some penalties increasing by up to 50 times. The National Assembly passed the Pakistan Hotels and Restaurants (Amendment) Bill, 2026, which the Senate had already approved on June 10, 2026. The amendments target violations such as failure to obtain registration and continued failure to register, with penalties soaring from a maximum of Rs.

5,000 to Rs. 250,000. Daily fines for ongoing violations have been raised from Rs. 1,000 to Rs. 10,000. Other penalties, like those for serving harmful food or improper advertising, have also doubled. The legislation expands the definition of a hotel to include businesses with just five rooms, potentially bringing more establishments under the regulatory umbrella.

Additionally, the law now considers environmental hazards and earthquakes in hotel registration requirements, and gives authorities the power to seal premises with backup from local administration and police. The amendments aim to strengthen regulatory authority and deter non-compliance in the tourism and hospitality sector, specifically in Islamabad.