The federal government is expected to announce the highest-ever increase in the value of Diyat (blood money) for the fiscal year 2026-27, with the proposed amount set at Rs. 19.3 million. If approved by the federal cabinet, the revised compensation will mark the largest increase in Pakistan’s history, reflecting the sharp rise in silver prices that determine the legal value of Diyat.

The proposed revision comes as the government updates the compensation amount in accordance with provisions of the Pakistan Penal Code (PPC), ensuring that the legally prescribed value remains aligned with prevailing market rates.

According to sources, the Finance Division has submitted a proposal to the federal cabinet recommending that the Diyat value be fixed at Rs. 19.3 million for FY2026-27. This represents a significant increase from the Rs. 9,828,670 notified for FY2025-26.

The nearly twofold increase is primarily linked to the substantial appreciation in the market value of silver, which serves as the benchmark for calculating Diyat under Pakistani law.

Under Section 323(2) of the Pakistan Penal Code (PPC), the amount of Diyat is calculated based on the value of 30,630 grams of silver. As silver prices fluctuate in domestic and international markets, the government periodically revises the compensation amount to ensure compliance with the legal formula.

The proposed revision reflects the latest valuation of the prescribed quantity of silver, resulting in an unprecedented increase for the new fiscal year.

Diyat is a legal form of financial compensation paid in certain criminal cases involving the loss of life, where applicable under Pakistan’s legal framework. The amount is officially notified by the federal government after considering the prevailing value of silver as required by law.

Legal experts note that annual adjustments help maintain consistency with the statutory formula while preserving the intended value of compensation established under the Pakistan Penal Code.

If the federal cabinet approves the proposal, the revised amount will become effective for the fiscal year 2026-27 and will apply to relevant cases governed by the applicable legal provisions.

The proposed increase also highlights the broader impact of rising precious metal prices on legal and financial obligations in Pakistan. With silver prices experiencing notable gains, the value of Diyat has reached its highest level since the mechanism was introduced.

An official notification is expected after the federal cabinet completes its review of the Finance Division’s proposal. Until then, the existing Diyat value for FY2025-26 will remain in effect.