PESHAWAR: Khyber Pakhtunkhwa Cannabis Regulatory Authority (CRA) has approved reducing the licence fee for cannabis cultivation and processing, according to official documents.

The authority also approved removing excise duty on industrial hemp and hemp seed oil while giving approval to increase in excise duty on full-spectrum Cannabidiol and Tetrahydrocannabinol.

The documents read that CRA approved reducing licence fee for cannabis cultivation from Rs0.6 million to Rs0.5 million and licence fee for cannabis processing from Rs1.5 million to Rs1 million. It read that CRA reduced the licence fee for hemp processing from Rs0.7 million to Rs0.5 million while excise duty on full-spectrum Cannabidiol and Tetrahydrocannabinol was increased from Rs3,000 per kilogram to Rs5000 per kilogram.

The decision was taken during a meeting held with minister for excise, taxation and narcotics in the chair on December 22, the document said. It added that the meeting was a continuation of the sub-committee meeting held on December 4 and had recommended the changes.

The documents said that during CRA meeting, the proposed Hemp Model for Khyber Pakhtunkhwa was presented before the committee where secretary of excise, taxation and narcotics control and secretary of health emphasised that the proposed model may be simplified for ease of doing business and facilitation of investors.

After thorough deliberation, the meeting approved that pilot hemp cultivation licences would be issued to reputed industries in Khyber Pakhtunkhwa and industries would enter into partnership with farmers.

CRA approved application form for cultivation and processing of industrial hemp licence, Tetrahydrocannabinol sampling and analysis form, periodic inspection form and other mandatory registers.

The committee approved that Board of Investment (BOI) and industries department would extend facilitation in joint venture of industry and farmers, registration of farmers as private or cooperative company kept optional.

It approved that the import of hemp seed and its certification would be the responsibility of licensed industry concerned. Cannabis cultivation and processing will be postponed for the time being and medicinal cannabis regulation and its product management will be viewed in light of the requirements and criterion of Drug Regulatory Authority of Pakistan.

The document said that a sub-committee would be constituted for devising a cannabis model and revisiting cannabis regulations within 15 days for its constitution.

Published in Dawn, December 29th, 2025