KP legalises cannabis cultivation to reap economic benefits

PESHAWAR: The Khyber Pakhtunkhwa government has formally legalised the cultivation and commercial use of cannabis/hemp for medicinal, research, and industrial purposes across the province, following the approval of new regulatory rules.

The new rules were approved during a meeting of the provincial cabinet chaired by Chief Minister Ali Amin Gandapur. The approved rules outline procedures for cultivation, refinement, processing, and sale of cannabis under a structured licensing system.

According to the new rules, the provincial government aims to harness the economic potential of cannabis by promoting regulated production. The initiative includes strict licensing conditions, an effective monitoring mechanism, tax collection, prevention of illegal cultivation and smuggling, promotion of research, and the creation of local employment opportunities.

Under the rules, licences will be issued for various categories including cultivation, nurseries, processing, laboratory testing, medicinal and research use, industrial and commercial sales, transport, and pharmacy operations.

KP Agriculture Minister Major (retd) Sajjad confirmed while speaking to Hum News English that the cabinet had finalised the framework for using cannabis for medicinal and industrial purposes.

He noted that there is strong export demand from foreign countries, which encouraged the government to regulate the sector.

Likewise, officials from the Excise, Taxation, and Narcotics Control Department said the new licensing regime will ensure that cannabis is directed towards medicinal and commercial use, rather than being exploited for narcotic production.

It may adde here that a 2021 survey had found that the merged tribal districts of Khyber, Orakzai, and Kurram are particularly suitable for cannabis cultivation, with Khyber district accounting for the largest area under cultivation, followed by Orakzai and Kurram.

The survey estimated that over 49,000 acres in these regions are already used for cannabis farming, which underscored the need for the legalisation of cannabis cultivation and uses to garner economic benefits for the province.

The federal government had permitted the commercial cultivation of cannabis in August 2024 to secure four percent share in the $25 billion international cannabidiol market.