Kathmandu— Nepal’s Finance Minister, Dr. Swarnim Wagle, indicated on Friday that the government is open to legalizing the production and marketing of cannabis for medicinal purposes, but stressed the need for comprehensive review and expert consultation due to concerns about its potential misuse as a narcotic drug. Responding to questions from members of the National Assembly, Wagle highlighted growing acceptance of marijuana in developed nations and suggested legalization could boost Nepal’s economy through increased income, job creation, industrial growth, and government revenue. The Minister noted that initial funding has been allocated for developing relevant legal frameworks.

Balancing Medicinal Potential with Narcotic Concerns

Dr. Wagle acknowledged the dual nature of cannabis, recognizing its value as a medicinal plant while also expressing concern over its potential for narcotic use. He emphasized the importance of reviewing existing legal provisions and conducting further studies before making any decisions regarding production. “That's why legal provisions need reviewing following in consultations with experts,” he said. “Further study before deciding on the existing provisions on its production is imperative.”

Economic Benefits Highlighted

The Finance Minister outlined potential economic benefits associated with regulated cannabis production and marketing, including increased income for farmers, employment opportunities, promotion of industrial development, and a rise in government revenue. He suggested that if further study supports legalization, it could positively impact Nepal’s economy. Wagle pointed to the increasing openness towards marijuana in developed and Western nations as a potential model for Nepal.

Budget Allocation for Legal Framework

Dr. Wagle informed National Assembly members that an initial budget of Rs 700,000 (approximately $5,600 USD) was allocated in the fiscal year 2083/84 BS – equivalent to 2026/27 – for the development of necessary acts, rules, procedures, guidelines and standards related to various ministries. He also assured Bhuwan Bahadur Sunar that respective ministries have the flexibility to transfer budgets based on need.

The government will now undertake further study and consultation with experts to determine whether amending existing laws to allow for regulated cannabis production is feasible and beneficial.

(With inputs from RN)

Originally published on abcnews.com.np.