The Securities and Exchange Commission of Pakistan (SECP) and the Cannabis Control and Regulatory Authority (CCRA) have introduced a coordinated regulatory framework requiring businesses entering Pakistan’s medicinal and industrial cannabis sector to obtain regulatory approval before incorporation.
Under the framework, companies seeking to include cannabis related activities in their memorandum of association must obtain a No Objection Certificate (NOC) from CCRA before incorporation.
The arrangement 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 were also present at the signing ceremony.
Companies may reserve their proposed names with SECP, but incorporation will depend on obtaining a CCRA NOC if their proposed business activities involve cannabis. The requirement will continue to apply during subsequent operations, with fresh approval needed for changes to a company’s principal business activities, directors or shareholding.
Sidhu said the framework provides a clear regulatory pathway for businesses entering the emerging medicinal and industrial cannabis sector while ensuring compliance with CCRA’s sector specific requirements.
Under the arrangement, SECP will continue to oversee corporate registration and related compliance, while CCRA will remain responsible for sector specific licensing and regulatory requirements.
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