The federal govt is likely to significantly increase the value of Diyat (compensation in lieu of life) for the fiscal year 2026-27, with the proposed amount set at Rs19.3 million. If approved, it will mark the largest annual increase in Pakistan’s history, reflecting the sharp rise in global and domestic silver prices.
According to sources, the Finance Division has proposed to the federal cabinet that the Diyat amount be fixed at Rs19.3 million, compared to Rs9,828,670 during FY2025-26. The proposal has been prepared in accordance with the legal formula prescribed under Section 323(2) of the Pakistan Penal Code (PPC), which bases Diyat on the value of 30,630 grams of silver.
Diyat is financial compensation payable to the legal heirs of a victim in applicable cases under Pakistani law. The amount is reviewed annually to reflect fluctuations in the market price of silver, ensuring that the compensation remains aligned with current economic conditions.
Officials said the State Bank of Pakistan (SBP) recommended a substantially higher Diyat amount for the new fiscal year after a sharp increase in silver prices pushed the calculated value to a record level. The revised amount will become legally applicable once it receives formal approval from the federal cabinet.
Following cabinet approval, the Finance Division will issue an official notification, making the new Diyat value binding on courts and all relevant institutions handling Diyat-related cases during FY2026-27.
Legal experts note that the annual revision is a statutory requirement and directly depends on silver prices rather than government discretion. The proposed increase is expected to have a significant impact on Diyat settlements, legal proceedings, and compensation calculations across the country.
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