Legal & Regulatory

Pakistani Assembly Votes to Legalize Medical Cannabis

The Pakistani National Assembly has just passed the 2024 Cannabis Control & Authority Bill that will regulate the medical and industrial use of cannabis by establishing a regulatory body (CCRA) to oversee licensing and compliance. The bill marks a significant shift in Pakistan’s approach to cannabis and aims to capitalize on the projected export revenues of up to $7 billion annually.

The National Assembly of Pakistan has passed the 2024 Cannabis Control & Authority Bill, aimed at regulating the cultivation, extraction, processing, and sale of cannabis derivatives for medical and industrial purposes.

This bill, debated this week, seeks to establish a regulatory body responsible for creating a framework for medical cannabis in the country.

It reflects a growing shift in the country’s attitude, which recently legalized hemp. Last month, it was announced that industrial hemp cultivation would be permitted starting in January 2025, a market that the Pakistani government estimates could generate up to $7 billion in annual exports.

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What Happened?

The country’s new coalition government, which came to power in February 2024, is pushing forward with plans to create a Pakistani cannabis market.

In February 2024, the Pakistani Cannabis Control and Regulatory Authority Ordinance was enacted, primarily aiming to establish a regulatory body to oversee the creation of a national framework for medical cannabis and industrial hemp.

The bill was first proposed in 2020 by then-Prime Minister Imran Khan, who has since been removed from office, but it remained largely stalled in legislative limbo.

Pakistan’s creation of a regulatory body, the Cannabis Control and Regulatory Authority (CCRA), marks a significant shift in its stance on the potential of cannabis. It now allows the country to move forward with establishing a cannabis market without violating United Nations law, which requires a regulatory body to oversee such a market.

Pakistani Government Passes Bill in Record Time

With a clear goal of capitalizing on the economic benefits of the plant, the Pakistani government began work on setting up the regulator in April, quickly finalizing the 13-member board, which includes representatives from various government departments, intelligence agencies, and the private sector.

Since then, the bill has been debated in the National Assembly, with several amendments proposed by the Standing Committee on Defense.

In early August, after a “thorough debate,” the committee unanimously recommended the bill’s approval, pending a review of the proposed amendments.

During the discussions, Dr. Syed Hussain Abidi, Chairman of the Pakistan Council of Scientific and Industrial Research (PCSIR), explained that the global medical cannabis market is worth $30 billion, while industrial hemp is valued at around $5 billion.

The bill has been sent to the Senate before being enacted.

What Does the Pakistani Cann Bill Contain?

The Pakistani bill covers the cultivation, extraction, processing, manufacturing, and sale of cannabis, all of which will be overseen by the new CCRA.

All these activities will require licensing from the Pakistani CCRA, with licenses being granted for five-year periods and non-transferable.

The CCRA will conduct regular inspections of licensed entities to ensure compliance. It is also empowered to impose penalties for violations, including fines and imprisonment, and to coordinate with the anti-narcotics force for any necessary legal action.

Violations of the ordinance or license conditions can result in fines ranging from $35,000 to $700,000.

The Pakistani federal government is responsible for developing a national policy governing all aspects of the cannabis market, with input from the authority and provincial governments. This policy aims to integrate illegal cannabis activities into the regulatory framework and promote the cannabis market while ensuring public safety.

(Featured image by Voice of America (Pubic Domain) via Wikimedia Commons)

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First published in Newsweed, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Andrew Ross

Andrew Ross is a features writer whose stories are centered on emerging economies and fast-growing companies. His articles often look at trade policies and practices, geopolitics, mining and commodities, as well as the exciting world of technology. He also covers industries that have piqued the interest of the stock market, such as cryptocurrency and cannabis. He is a certified gadget enthusiast.

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