Yes, the Khyber Pakhtunkhwa (KP) government has decided to legalize the cultivation of cannabis, specifically industrial hemp, as part of a broader national initiative to tap into the lucrative global hemp market.
National Legal Framework
In September 2024, Pakistan’s National Assembly passed the Cannabis Control and Regulatory Authority Act, 2024, establishing a legal framework for the cultivation, processing, and sale of cannabis derivatives for medicinal and industrial purposes. The Act led to the creation of the Cannabis Control and Regulatory Authority (CCRA), tasked with overseeing licensing, regulation, and compliance. The CCRA’s board includes representatives from various government departments and is chaired by the Defense Secretary .
KP’s Role and Economic Potential
KP is actively participating in this initiative. The provincial government, in collaboration with the University of Peshawar, conducted surveys in districts like Khyber, Kurram, and Orakzai to assess the feasibility of hemp cultivation. Findings suggest that hemp can be cultivated on substantial land areas in these districts, with the potential to produce significant quantities of CBD oil and fiber. An acre of hemp could yield CBD oil valued between PKR 1.5 to 2 million, offering a more profitable alternative to illegal hashish production .
Economic and Industrial Impact
The global hemp market is vast, with applications in textiles, pharmaceuticals, construction, and more. Pakistan aims to earn $5–7 billion in foreign exchange by exporting hemp products. The government has already initiated cultivation on a two-acre area at the Barani Agricultural University and is developing various hemp-based products .
Regulatory Measures
To ensure controlled cultivation, the CCRA will issue licenses for commercial hemp farming. The regulatory framework mandates that cultivated hemp must contain no more than 0.3% THC, distinguishing it from psychoactive cannabis varieties. The CCRA will also oversee the extraction, refining, manufacturing, and sale of hemp derivatives, aligning with international standards and best practices .
This strategic move positions KP and Pakistan to become significant players in the global hemp industry, fostering economic growth, creating employment opportunities, and promoting sustainable agricultural practices.
