PESHAWAR: The Khyber Pakhtunkhwa government has decided to grant legal protection to cannabis cultivation and the annual production of 35 million kilograms of hashish, worth around 600 billion Pakistani rupees.
Cannabis is grown across 295 square kilometers (72,000 acres) in three districts—Wadi Tirah in Khyber, Orakzai, and Kurram. The annual yield is approximately 3,500 tons (35 million kilograms) of hashish. The estimated market value exceeds 600 billion rupees.
The largest cultivation area is in Orakzai (140 square km), followed by Wadi Tirah in Khyber (109 square km) and Kurram (46 square km). The highest-quality yield comes from Tirah.
While a small portion of cannabis is used for medicinal purposes, most is converted into hashish. Much of this is smuggled, and the revenue is often linked to terrorism financing.
On December 4, the Excise and Taxation Department held a meeting to discuss legal protection for cannabis cultivation. The committee released a statement outlining proposals for formalizing the sector. These proposals will be submitted for approval by the provincial cabinet.
Under the initial plan, farmers cultivating cannabis in Wadi Tirah, Orakzai, and Kurram will be registered and issued official licenses.
The initiative traces back to 2020 when former Prime Minister Imran Khan directed four federal ministries—Anti-Narcotics, Science and Technology, Food Security, and Commerce—to develop a policy framework for legal cannabis cultivation.
In 2021, the KP government began surveys of cannabis cultivation in Khyber, Orakzai, and Kurram. The Department of Pharmacy at Peshawar University conducted the six-month survey at a cost of 14.3 million rupees.
According to modern mapping and market data, 72,896 acres across the three districts are under cannabis cultivation. The annual output is 3,500 tons. Market rates currently range from 130,000 to 180,000 rupees per kilogram.
On December 4, 2025, an Excise and Taxation meeting chaired by Minister Fakhr Jahan formally discussed legal protection. Participants included Health Minister Khaliq-ur-Rehman, Law Minister Aftab Alam, Secretary Excise Khalid Ilyas, DG Excise Abdul Halim, Deputy Commissioners of the three districts, representatives from Peshawar University, the KP Investment Board, PCSIR, and KP Economic Zones Development & Management Company.
Agenda items included setting license fees and excise duties, registering farmers as private limited companies, approving cultivation zones, determining annual cultivation quotas, and amending cannabis regulations.
The committee agreed in principle to issue licenses for first- and second-phase cultivators. It also approved the formation of a 17-member subcommittee to finalize recommendations. Members will include DGs of Excise and Agriculture Research, Deputy Commissioners, law officials, and representatives from pharmaceutical companies.
The subcommittee will prepare proposals for cabinet approval, set license fees, and formalize excise duties. It will also manage the issuance of licenses in the second phase.
This move aims to formalize cannabis cultivation, provide economic opportunities, and curb illegal hashish production and smuggling in Khyber Pakhtunkhwa.
