Pakistan has embarked on an unconventional economic strategy by legalizing cannabis for medicinal purposes and establishing a regulatory authority to oversee its cultivation and trade. This move comes amid the country's severe economic crisis, aiming to tap into the global cannabis market to bolster its finances.
In February, the Pakistani government introduced an ordinance, leading to the establishment of the Cannabis Control and Regulatory Authority (CCRA). This body is tasked with overseeing various aspects of cannabis cultivation, extraction, manufacturing, and sales for medical and industrial applications.
With favorable growing conditions, Pakistan aims to leverage its entry into the global cannabis market to generate revenue through exports, foreign investments, and domestic sales. The initiative is seen as a potential remedy for Pakistan's economic woes, with inflation soaring to 25% and economic growth hitting a low of 1.9%, marking the country's worst economic crisis since its inception.
The CCRA comprises 13 members from government departments, intelligence agencies, and the private sector, reflecting a concerted effort to integrate Pakistan into the global cannabis industry. This initiative was initially proposed in 2020 during Imran Khan's tenure as Prime Minister, signaling the nation's commitment to participating in the cannabis and cannabis derivatives trade.
The global cannabis market is projected to reach $64.73 billion this year, offering significant opportunities for revenue generation. Beyond its psychoactive properties, cannabis is increasingly recognized for its medicinal benefits, including alleviating anxiety, depression, and chronic pain.
The regulatory framework imposed by the CCRA aligns with UN laws, mandating federal oversight to ensure international compliance and limit the psychoactive component tetrahydrocannabinol (THC) to 0.3%. Stringent fines are imposed on individuals and companies engaging in recreational cannabis use, further deterring illegal activities.
By formalizing cannabis cultivation and trade, Pakistan aims to curb illegal activities, generate revenue, and empower local farmers. However, the success of this initiative hinges on the country's ability to produce high-quality cannabis derivatives and compete in the international market. Despite challenges, the regulation marks a significant step towards economic revitalization and regulatory control in Pakistan.
