The Department of Economics started functioning as soon as the University was established by transferring M.A. Economics classes from Government College, Bosan Road, Multan to the University. Teaching staff was also acquired on deputation from the same institution. At present, there are ten members of the teaching staff. Four of them hold Ph.D. degrees from abroad and one from Pakistan. The Department offers a wide range of courses in the field of Economics. In line with the decision of Higher Education Commission (HEC), the Department of Economics has introduced BS, 4 years program, from the academic session 2007-08. The main purpose of this program is to provide the essential knowledge and skills of Economics to the students. The program offers promising choice to the students in the selection of their career at intermediate level.

Keeping in view the present day requirements of the subject, the Department of Economics is already offering exciting and academically challenging postgraduate degree of M.Sc. Economics both in morning and in afternoon program (self-finance). The program provides a foundation in modern technique of Quantitative Economics, Financial Economics and Econometrics with emphasis on quantitative tools such as Mathematics, Statistics and Computer applications. The central feature of the course is its blend of core economic concepts and principles with modern research methods. Masters of Science in Economics is a two years postgraduate program comprising of four semesters.

The Department also aims at promoting research on various local and national issues. For this purpose the Department has introduced both M.Phil. and Ph.D. programs. Presently, twenty two students have been registered as Ph.D. candidates. The students strength has now risen to over 250 per academic year. The Department has a library of more than 5000 books, plus a collection of national and international journals. Computer facilities are also available in the Department. As a bilateral exchange program, the Department has established a linkage with the Molde University College, Molde, Norway. Accordingly, the Molde University College will offer one scholarship for Doctoral Degree Program each year. Presently, three faculty members of this department are studying in Norway under the said program.