President Mamnoon Hussain has approved awarding the medal posthumously for the fighter pilot, Radio Pakistan said in a report on Saturday.
The president approved the award on the recommendation of Prime Minister Nawaz Sharif.
Marium Mukhtiar was killed on November 24th when her fighter jet crashed at Kandian area of Bhakra near Mianwali.
A PAF spokesman stated that the aircraft developed problems but the pilot managed to divert the jet away to avoid any harm to the populated area.
