Pakistan plans to tap into $25 bln legal cannabis market — science minister

Pakistan's Minister for Science & Technology Fawad Chaudhry speaks during a press conference in Islamabad on Sept. 2, 2020. (AN photo by Sib Kaifee)
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Updated 02 September 2020
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Pakistan plans to tap into $25 bln legal cannabis market — science minister

  • Minister expects hemp cultivation and processing to generate $1 billion for Pakistan
  • Cultivation of legal hemp is under the government and will be overseen by the Ministry of Narcotics Control

ISLAMABAD: Pakistan plans to import a specific variety of cannabis seeds to begin research on its industrial and medical use to tap into the $25 billion cannabidiol (CBD) market, the science and technology minister said on Wednesday, a day after the federal cabinet approved the country’s first license for non-psychoactive hemp.
The hemp project is part of the Science Ministry’s larger initiative on precision agriculture, in which niche projects focused on non-traditional agriculture are under development. One of them, for industrial and medical use of hemp, was approved by the government on Tuesday. Hemp is used to extract cannabidiol (CBD) that is widely used for therapeutic purposes.
“CBD compound plays an important role in therapeutical medicine and after 2016 a breakthrough research was unveiled which prompted China to set up a cannabis research department and is now cultivating hemp on 40,000 acres, and Canada is cultivating it on 100,000 acres,” Science Minister Fawad Chaudhry told reporters during a press briefing in Islamabad.
Flanked by three specialists heading the hemp project, he clarified that the plant Pakistan plans to grow contains legal levels of tetrahydrocannabinol (THC) — around 0.3 percent or below. At higher levels, THC is intoxicating and illegal in much of the world.
The minister said that hemp seeds are used for producing oil, leaves for developing medication, while stems are used for fibers which are gradually replacing cotton in the textile industry.
“Worldwide this fiber is replacing cotton. Clothes, bags, and other textile products are being made using this plant’s fiber. This is a $25 billion market and Pakistan can take a big share in this market,” Chaudhry said.
“This is under government control, so further research can be done and adequate safeguards through ministry of narcotics can be placed,” Chaudhry said but conceded that for expanding production, the private sector will be involved in future.
He expects the hemp market to generate $1 billion in revenue for Pakistan in next three years, when research, cultivation, production, and exports for medical and industrial purposes are underway.

The ministry has scouted areas in the Potohar region in northern Punjab, which is considered adequate for growing hemp due its climate. The country’s top biotechnologists are onboard to spearhead the project.
Validation and certification of hemp will be performed by the globally recognized International Center for Chemical and Biological Sciences (ICCBS).
“We have two options. One is to grow the plant, produce oil and export it, or the other option is that we take the oil and create a valuable product,” ICCBS director Dr. Iqbal Chaudhry said.
“To achieve the objective of generating $1 billion from this, we need to create premium products from the extracted oil for medicines but also for cosmetics, soaps and shampoos.”


Pakistan signals commitment to regulate digital assets in meeting with Binance leadership

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Pakistan signals commitment to regulate digital assets in meeting with Binance leadership

  • Binance delegation led by CEO Richard Teng meets Pakistan’s prime minister, army chief in Islamabad
  • Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight

ISLAMABAD: Pakistan’s government has signaled its “strong commitment” to digital asset regulation as the country’s senior officials met the leadership of Binance, one of the world’s most prominent global cryptocurrency exchanges, the Prime Minister’s Office (PMO) said on Saturday. 

The Binance team, led by its Chief Executive Officer Richard Teng, is in Pakistan and has held meetings with Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib and senior Pakistani bank officials this week. 

Pakistan has been attempting to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight and encouraging innovation in blockchain-based financial services.

“Binance senior leadership visits Pakistan as government signals strong commitment to digital asset regulation,” the PMO said. 

A Binance delegation led by Teng met Chief of Army Staff and Chief of Defense Forces Field Marshal Syed Asim Munir in Islamabad. 

Saqib also attended the meeting and gave the Binance team a briefing about his organization.

Pakistan has attempted in recent months to tap into the country’s growing crypto market, a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.

In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.