Pakistan Approves Funding to Launch Government-Run Cannabis Regulatory Office in Islamabad

Key Points
  • Pakistan’s federal cabinet approved Rs. 100 million (approx. $359,000) for renovating and operationalizing the new Cannabis Control and Regulatory Authority headquarters in Islamabad.
  • The authority has acquired a building formerly used by the Pakistan Council for Renewable Energy Technologies, which requires significant modifications to meet its needs.
  • The Cannabis Control and Regulatory Authority was established to regulate cannabis cultivation, extraction, medical and industrial use, and sales in Pakistan, operating under the Cabinet Division.
  • The authority has a 13-member board and is responsible for advising the federal government on cannabis policy and issuing five-year licenses for cannabis-related activities.

Pakistan’s federal cabinet has approved funding to help launch the country’s new government-run Cannabis Control and Regulatory Authority headquarters in Islamabad.

The Economic Coordination Committee approved a Rs. 100 million technical supplementary grant for renovation and operational work tied to the authority’s new headquarters. The amount is equal to roughly $359,000 based on current exchange rates.

The agency has taken possession of a building that previously housed the now-defunct Pakistan Council for Renewable Energy Technologies. Officials said the building requires substantial modifications before it can meet the operational needs of the Cannabis Control and Regulatory Authority.

The authority, which is housed under the Cabinet Division, was created to regulate the cultivation, extraction, medical use, industrial use and sale of cannabis plants in Pakistan. Its headquarters will be located in Islamabad.

Officials told the Economic Coordination Committee that the authority had requested Rs. 1 billion for the 2025-26 fiscal year, but the Finance Division allocated only Rs. 200 million. Because of the funding gap, the Cabinet Division arranged Rs. 100 million from its own funding demand and surrendered the amount in favor of the Cannabis Control and Regulatory Authority through a technical supplementary grant.

The committee approved the allocation to help finish renovation work and bring the remaining facilities online.

The Cannabis Control and Regulatory Authority was established through an ordinance issued by former President Arif Alvi. The regulatory framework calls for a 13-member board of governors chaired by the Defence Division secretary, with representation from the Cabinet Division, Law Ministry, National Food Security Ministry, provincial governments, intelligence agencies, the Anti Narcotics Force and the Drug Regulatory Authority of Pakistan.

The authority is responsible for advising the federal government on cannabis policy and issuing licenses for cultivation, production and industrial use. Licenses issued under the framework are valid for five years.