Businesses planning to operate in Pakistan’s medicinal and industrial cannabis sector will now need regulatory approval before incorporation under a new framework agreed by the Securities and Exchange Commission of Pakistan (SECP) and the Cannabis Control and Regulatory Authority (CCRA).

Companies intending to include cannabis related activities in their memorandum of association must obtain a No Objection Certificate (NOC) from the CCRA before incorporation.

The framework was formalized through a memorandum of understanding signed by SECP Commissioner Muzzafar Ahmed Mirza and CCRA Director of Operations, Licensing and Vigilance Asif Haroon. SECP Chairman Kabir Ahmed Sidhu and CCRA Director General Major General (Retd.) Zafarullah Khan attended the signing ceremony.

Businesses can reserve their proposed names with the SECP, but their incorporation will remain subject to a CCRA NOC if their planned activities involve cannabis.

The approval requirement will also remain applicable after incorporation. Companies will need fresh regulatory approval if they seek to change their principal business activities, directors or shareholding.

Sidhu said the arrangement establishes a clear regulatory process for businesses seeking to enter the emerging medicinal and industrial cannabis sector while ensuring compliance with sector specific requirements.

Under the framework, the SECP will continue to handle company registration and corporate compliance, while the CCRA will oversee licensing and other regulatory matters specific to the cannabis sector.