The new KP government expects to enrol about 250,000 out-of-school children in government schools this year.
The bill, if it becomes law, would make corporal punishment in KP schools punishable with a fine and imprisonment.
Educational opportunities in Pakistan for Afghan students are a sign of strong ties between the two nations, officials say.
Teachers are welcoming the subject matter, which is aimed at helping the younger generation act socially responsible.
The move will mainstream seminaries, preventing terror links and allowing the government to provide funds for new facilities, say officials.
More than 15,000 schools have been closed in the province due to various insurgent activities.
Extremism at universities is a complex threat, says an Institute of Strategic Studies report.
The programme is currently running at jails in Peshawar and Mardan. Authorities are looking to expand the programme even further.
The Pakistani government is offering special student visas, dedicated slots in schools and scholarships for Afghan students.
Education is the key to development and ending militancy and violence in the Federally Administered Tribal Areas, observers say.