Bureaucracy holding up Pakistan’s hemp industry but stakeholders remain optimistic

Despite Pakistan’s passage of a cannabis law in 2024 and the subsequent establishment of a Hemp Authority, the industry is at a standstill due to bureaucratic delays. The Authority, meant to regulate cultivation and processing, has yet to become operational as no director general has been appointed, and no cultivation licenses have been issued.

However, optimism remains high among stakeholders, who are banking on domestic hemp production for textiles after promising research identified local hemp varieties suitable for large-scale cultivation and textile applications.

Research drives optimism

The University of Agriculture, Faisalabad (UAF), in collaboration with US Denim Mills, Lahore, initiated industrial hemp research in 2021 to address the challenges posed by climate change on Pakistan’s cotton-dependent textile industry. The project concluded this year, demonstrating that locally grown hemp could be a viable alternative to cotton, offering a sustainable and cost-effective solution.

The research team, led by Dr. Asad Farooq, Chairman of the Department of Fibre and Textile Technology at UAF, tested hemp plants from 16 regions across Pakistan, ultimately identifying three varieties suitable for industrial use. These varieties were then processed using a proprietary fiber extraction and softening technology developed at UAF, making them compatible with Pakistan’s existing cotton-spinning infrastructure, Farooq said.

“Pakistan currently imports hemp from China, which is expensive and naturally coarse. Our goal was to develop a locally sourced, superior-quality hemp fibre that is soft and durable, making Pakistani hemp textiles globally competitive,” Farooq told The News on Sunday.

The project achieved full-scale production, from harvesting and processing hemp into cottonized fiber to spinning yarn and producing fabric.

Poised for expansion

US Denim Mills, which collaborated closely with UAF throughout the research phase, is eager to capitalize on the project’s success. The company has already allocated 4,000 acres for hemp cultivation but is awaiting regulatory clearance. CEO Irfan Nazir said demand for the company’s hemp-cotton blend fabric is “exceptionally high.”

Industry leaders believe that local hemp cultivation could not only reduce Pakistan’s reliance on expensive imports but also position the country as a global player in sustainable textiles. Hemp’s natural antibacterial properties, lower water requirements compared to cotton, and rapid growth cycle of 90 to 100 days make it an ideal alternative, especially in the face of climate change.

Roadblocks

Despite the enthusiasm from the private sector, regulatory hurdles remain a significant bottleneck. The Cannabis Control and Regulatory Authority Bill, passed in September 2024, was meant to streamline licensing and regulation for both hemp and marijuana. However, the Hemp Authority, established under this law, is yet to become operational due to the absence of a director general. Consequently, no cultivation licenses have been issued, stalling the industry’s progress.

Farooq said that along with the domestic genetics, Pakistan has the technology to scale up production. “But the licensing delay is holding us back. This is a golden opportunity for Pakistan to position itself as a global leader in sustainable textiles,” he said.

The push for hemp in Pakistan is partly driven by the devastating impact of climate change on the country’s cotton industry. Rising temperatures, droughts, and extreme weather have disrupted cotton production, leading to supply chain gaps and increased costs. Hemp, on the other hand, is more resilient to climate stressors and requires significantly less water, fertilizer, and pesticide than cotton.

Legislative history

Pakistan’s journey toward industrial hemp cultivation began with the approval of hemp farming and processing in September 2020 under the government of then-Prime Minister Imran Khan. Initially managed by the Ministry of Science & Technology, the policy’s scope expanded under Prime Minister Shehbaz Sharif, bringing in the ministries of Narcotics Control, Commerce, and National Food Security and Research.

In February 2024, Pakistan issued an ordinance for hemp cultivation, later formalized as the Cannabis Control and Regulatory Authority Bill, which establishes the Hemp Authority to oversee licensing, regulation, and development of the industry. The law also sets a 0.3% THC limit to distinguish hemp from marijuana and applies to all derivatives for industrial uses, including textiles, pharmaceuticals, food, construction, and chemicals.

To stimulate industry growth, the law provides for financial and non-financial incentives, safety standards, and consumer protection measures. It also mandates collaboration with Pakistan’s Anti-Narcotics Force for compliance and enforcement.

$1 billion?

Some advocates have suggested that Pakistan’s hemp sector could quickly reach $1 billion in revenue and significantly improve the country’s foreign exchange position. Many stakeholders view hemp as a strategic replacement for cotton, while others see opportunities in CBD production and bio-energy outputs from hemp fiber residue.

However, the absence of a functioning regulatory body threatens to undermine this potential. Industry insiders are calling for swift government action to appoint leadership and issue licenses, warning that prolonged delays could see Pakistan miss out on the booming global market for sustainable textiles.


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