Islamabad hotel fines are set to rise sharply, with some penalties increasing by as much as 50 times under newly approved legislation.
The National Assembly passed the Pakistan Hotels and Restaurants (Amendment) Bill, 2026. The Senate had already passed the bill on June 10, 2026. The law amends the Pakistan Hotels and Restaurants Act, 1976, for the Islamabad Capital Territory only, as reported by ProPakistani.
The change does not apply across Pakistan. It applies to hotels and restaurants in Islamabad, and it should not be read as a nationwide rise in hospitality penalties.
Islamabad hotel fines: old and new rates
The largest rise concerns hotels and restaurants that fail to apply for registration within the required period. The maximum penalty for that violation rises from Rs5,000 to Rs250,000, a 50-fold increase.
Other penalties rise sharply as well:
| Violation | Old fine | New fine |
|---|---|---|
| Failure to apply for registration | Up to Rs5,000 | Up to Rs250,000 |
| Continuing failure to register, per day | Up to Rs1,000 | Up to Rs10,000 |
| Serving harmful or contaminated food, or using contaminated utensils | Up to Rs1,000 | Up to Rs10,000 |
| Failure to follow an order or direction under the law | Up to Rs1,000 | Up to Rs10,000 |
| Charging above approved fair rates, first offence | Up to Rs1,000 | Up to Rs10,000 |
| Charging above approved fair rates, later offence | Up to Rs2,000 | Up to Rs20,000 |
| Unregistered restaurant failing to comply with a directive | Up to Rs5,000 | Up to Rs125,000 |
| Unlicensed hotel or restaurant advertising itself wrongly, or using a star sign | Up to Rs1,000 | Up to Rs10,000 |
| Continuing improper advertising or star use, per day | Up to Rs200 | Up to Rs2,000 |
The amendment also allows penalties to rise in future in line with the Consumer Price Index, or inflation, subject to prescribed rules. That means the new rates are not fixed in cash terms for all time.
Smaller hotels now fall under the law
The bill also changes what counts as a hotel. Under the old law, an establishment needed at least 10 lettable bedrooms to fall within the definition of a hotel.
The amendment cuts that threshold to five rooms. That change could bring smaller hotels and guesthouses in Islamabad under the registration and regulatory system for the first time.
The law also adds environmental hazards and earthquakes to the factors considered under hotel registration requirements. Authorities will also have explicit power to seal premises through departmental staff, with help from the local administration and police, as part of enforcement.
What the change means for Islamabad visitors and owners
For visitors, the most direct effects concern food safety and fair pricing. Serving contaminated food, using contaminated utensils and charging above approved fair rates now carry penalties 10 times higher than before.
For owners, the key change is registration. A hotel or restaurant that fails to register on time now faces a penalty of up to Rs250,000, against Rs5,000 before. Continuing to operate without registration costs up to Rs10,000 a day.
Small guesthouses with five to nine rooms should check their status first, because the lower room threshold may now bring them into the system. Owners who already hold registration should check that their records, rates and star claims match the law, since wrong advertising also carries a higher penalty.
The Senate Standing Committee had earlier said the higher penalties were aimed at improving deterrence and stricter compliance in tourism and hospitality. The bill’s statement of objects and reasons said the amendments were meant to update regulatory authority and revise penalties under the decades-old law.
Islamabad has seen a run of new public services for residents this month, including free scooty training for women. The hotel fines law is a different kind of change: it tightens the rules for businesses that serve the city’s visitors, rather than adding a new service.
Frequently asked questions
Do the new fines apply across Pakistan?
No. The amendment applies to the Islamabad Capital Territory only. It amends the Pakistan Hotels and Restaurants Act, 1976, for Islamabad.
What is the largest fine under the new law?
The maximum penalty for failing to apply for registration within the required period rises from Rs5,000 to Rs250,000.
Will small guesthouses be affected?
Yes, possibly. The definition of a hotel now starts at five lettable bedrooms, down from 10, so smaller establishments may now fall under registration rules.
Can the fines rise again in future?
Yes. The amendment allows penalties to increase in line with the Consumer Price Index, or inflation, subject to prescribed rules.
 Bill, 2026, with registration penalties up to Rs250,000.){kind=link}