Pakistan sets cannabis rules, eyes sales to help balance books

KARACHI -- Pakistan is establishing a legal framework for cannabis trade after the government approved the herb for industrial uses nearly four years ago, hoping to capitalize on the booming market to increase its foreign exchange reserves.

A presidential order passed in February delineated rules for the formation of Pakistan's first Cannabis Control and Regulatory Authority. The government approved cannabis for industrial use in September 2020 but had not established a regulatory framework due to internal conflict.

"We are very serious about this initiative, and things are moving at a very fast pace," a senior official of the Special Investment Facilitation Council, which is spearheading government efforts to draw investments and overhaul the economy, told Nikkei Asia.

The new coalition government -- formed of the Pakistan Muslim League-Nawaz (PMLN) and Pakistan Peoples Party (PPP) -- is setting up the regulatory body to formulate policies, such as issuing licenses to growers and sellers, and earmarking regions for cultivation, the official added.

Pakistan hopes to take advantage of its conducive growing conditions to enter the global cannabis market, that according to Indian research company MarketsandMarkets, will grow to $82.3 billion by 2027 from $27.2 billion in 2022. The country is seeking ways to increase exports and raise taxes to break its dependency on foreign loans and bailouts from the International Monetary Fund.