The Department of Economics is one of the fourteen departments within the Faculty of Social Sciences and Humanities at Allama Iqbal Open University. It was established in 1986 with few introductory courses at intermediate and bachelorís level. The department has, over the years, established itself as a reputable academic department in the country for higher studies and research in Economics. At present, the department offers MSc and MPhil programmes in different field of economics. The department currently has well qualified teaching faculty possessing PhD degree from foreign as well as local well reputed institutions. Further, the department continuously collaborates with economists, academicians and researchers of other academic institutions for student supervision, resource persons and as part-time teaching to the students at all levels.
Economics is a study to know how individuals and societies choose to use the scarce resources, the nature and previous generation have provided. Economics explains how we can achieve a high level of growth and employment, price stability, efficiency, an equitable distribution of income, reduction in pollution, economic freedom, sustainable development, macroeconomic stability and reduction in poverty. All these goals can be achieved if we understand the theoretical concepts on one hand and their applications on the other. There is a positive correlation between research and development. Research is the collection and use of data to test economic theories.