Nepal’s Finance Minister Dr. Swarnim Wagle recently issued positive statements about medical cannabis, indicating that the nation’s government supports allowing the commercial production and use of cannabis for medical purposes.

“Responding to questions from members of the National Assembly on Friday, he pledged that the Ministry of Finance would facilitate the process of legalizing cannabis cultivation.” stated Ratopati in its original coverage. “Minister Wagle mentioned that the issue of cannabis production and marketing is not just about income, employment, and revenue collection, but also about its medicinal use and controlled application.”

“There is a public debate about the commercial and medicinal use of cannabis, and its feasibility study has been mentioned in past budgets,” Finance Minister Wagle said, according to the outlet. “Although it was banned in the past under pressure from developed countries, those countries themselves are now moving towards openness. Therefore, it is necessary for Nepal to move forward positively.”

Finance Minister Wagle indicated that he will be working with Nepal’s Ministry of Home Affairs to further study the issue. He also added that an initial 700,000 rupees is earmarked in the budget for the upcoming fiscal year for the drafting of medical cannabis industry laws and regulations.

The Gandaki provincial government in Nepal approved a medical cannabis farming legalization measure earlier this month. Aspiring medical cannabis farmers in Gandaki will first be required to gain official approval from the provincial authority before launching their cultivation operations, although it is still unclear if the federal government will allow such approvals to proceed at this time.

Cannabis farming is currently prohibited at the federal level in Nepal, and people caught possessing cannabis can be jailed for a month. Cannabis distribution is punishable by up to 10 years in prison, depending on the amount involved. In June, Rastriya Swatantra Party (RSP) MP Parasmani Gelal issued public comments calling for Nepal’s government to modernize its cannabis laws and regulations to permit cannabis industry activity to boost the country’s economy.

“Marijuana should not be seen only as a narcotic substance and intoxication. It can also be used as a raw material for medicine, clothing, paper, oil, bioplastics, and construction materials. Many countries around the world, including the USA, Canada, Australia, France, Germany, China, and India, are building economies worth billions through scientific and systematic management.” MP Gelal stated at the time.

Nepal’s economy is heavily dependent on the national agricultural sector, which is estimated to employ roughly two-thirds of the population and generate around one-third of Nepal’s GDP. Nepal’s nominal GDP ranks 99th globally among all world economies.