The National Assembly has passed legislation increasing fines for hotels and restaurants in Islamabad, with some penalties rising by as much as 50 times under amendments to the Pakistan Hotels and Restaurants Act, 1976.
The Pakistan Hotels and Restaurants (Amendment) Bill, 2026 was passed by the National Assembly on October 27, after receiving approval from the Senate on June 10. The changes apply specifically to the Islamabad Capital Territory (ICT), rather than the whole country.
New Fines for Hotels and Restaurants
One of the biggest changes concerns establishments that fail to apply for registration within the required period. The maximum fine for this violation has increased from Rs5,000 to Rs250,000.
The revised legislation also raises penalties for other violations, including serving contaminated food, charging prices above approved rates and failing to follow official directions.
| Violation | Previous fine | New fine |
|---|---|---|
| Failure to apply for registration | Rs5,000 | Rs250,000 |
| Continued failure to register | Rs1,000 per day | Rs10,000 per day |
| Serving contaminated food or using contaminated utensils | Rs1,000 | Rs10,000 |
| Failure to comply with official directions | Rs1,000 | Rs10,000 |
| Charging above approved rates — first offence | Rs1,000 | Rs10,000 |
| Charging above approved rates — subsequent offence | Rs2,000 | Rs20,000 |
| Unregistered restaurant failing to comply with a directive | Rs5,000 | Rs125,000 |
| Improper advertising by an unlicensed establishment | Rs1,000 | Rs10,000 |
The legislation also increases the daily fine for continued improper advertising or misuse of a hotel’s star classification from Rs200 to Rs2,000.
Smaller Hotels to Come Under Regulatory Framework
The amendment expands the legal definition of a hotel by reducing the minimum number of lettable bedrooms required for an establishment to qualify as a hotel from 10 rooms to five rooms.
This change could bring smaller accommodation businesses in Islamabad within the registration and regulatory framework, increasing the number of establishments subject to the law.
The amended provisions also introduce environmental hazards and earthquakes as factors to be considered in hotel registration requirements. Authorities will have explicit powers to seal premises, with assistance from local administration and police where necessary.
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Fines May Increase Further in the Future
The amended law allows penalties to be revised in the future in line with the Consumer Price Index (CPI) or inflation, subject to the prescribed rules.
The stated objective is to modernise the decades-old legislation, strengthen regulatory enforcement and encourage compliance across Islamabad’s hospitality sector.
Hotels and restaurants operating in the federal capital will need to pay attention to registration requirements, food safety standards, approved pricing and licensing rules to avoid the higher penalties.
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