Pakistan enacts a law to oversee its cannabis industry

Pakistani President Arif Alvi has given his assent to the promulgation of the Cannabis Control and Regulation Authority Ordinance 2024, a move aimed at regulating the cultivation, extraction, manufacturing, and sale of cannabis derivatives. cannabis for medical purposes and industrial.

The new law, which comes after years of discussions and political turmoil which have delayed the development of the industry, create a Cannabis Control and Regulation Authority (CCRA) and establish a basic framework for licensing hemp and cannabis industry players. The CCRA will manage the licensing process and set rules to control the cultivation, processing, manufacturing, and sale of hemp-based products for medical, industrial, and other purposes.

A maximum THC content of 0.31% is adopted to define the boundary between hemp and cannabis, according to the new law, which will apply to «any derivative of the cannabis plant, whether natural or synthetic, [...]. (including) derivatives that are directly or indirectly made from any part of the cannabis plant for use in other industries, such as the textile industry, the pharmaceutical industry, the food industry, the construction industry, the chemical industry, etc., or any other industry defined by the federal government from time to time.».

Development financing

The new law also requires the government to provide financial and non-financial incentives to encourage the development of the cannabis product market, and to establish consumer protection and public safety strategies for elements such as packaging, and consumer education and awareness.

Under specific rules, licensees must provide labeling indicating the source and level of THC, the intended use, and any other information that may be included in rules yet to be established.

The Authority shall set safety and performance standards for adherence to good manufacturing and agricultural practices, the THC content control and consumer safety. The new agency will coordinate the enforcement of cannabis regulations with Pakistan's drug enforcement agency, which is empowered to inspect cannabis-related operations.

Recent history

Pakistan has approved the culture and hemp processing in September 2020, under the government of then-Prime Minister Imran Khan, entrusting the leadership exclusively to the Ministry of Science and Technology.

When the current Prime Minister Shehbaz Sharif succeeded Khan, who was ousted in 2022, the new government also involved the ministries of narcotic control, commerce, national food security, and research in developing cannabis policy.

Hemp advocates have suggested that Pakistan's hemp sector could quickly reach €1 billion and improve the country's foreign exchange position. Some stakeholders view hemp as a substitute crop for cotton in Pakistan's textile industry, while others see opportunities in CBD production and in hemp fiber residue that can be processed into bioenergy products.