The field of economics plays a vital role in the development process both at national and international levels. Better economic system not only leads to better economic prospects and growth, but also adds to the overall prosperity of a country, ensuring superior living standards. Economics places a key role in all aspects of life and as a subject helps achieving high level of welfare and human development, which proves to be the ultimate goal of most of the inventions and innovations in different fields of sciences.
The Department of Economics was established well before the Islamia College Peshawar (ICP) got the status of a public sector university in the year 2007-08. Soon after its inception as a university – rightly recognizing the importance of the subject field – the Department of Economics has widened its scope and started both BS Economics and MSc Economics programs at this Alma Matter.
Being familiar with the contemporary advancements in the field of Economics, where specialization is center to inventions and innovations in the subject field, the Department of Economics has initiated both the MS/M.Phil. and doctoral degree programs since 2015.
Currently, the Department of Economics have eleven (11) well qualified faculty members with diversified specialization in the field, having degrees from well reputed national and international institutions. Six (06) faculty members have PhDs in macroeconomics, finance, Econometrics and international trade, while three are currently pursuing their doctorate degrees. 
The faculty is aimed at imparting quality education of economics and research in a manner to prepare the students for understanding the contemporary economic issues and stipulate their possible remedies. The department also focuses on the professional growth of the students by engaging students in co-curricular activities side by side the curriculum requirements. The department encourages students for different workshops, seminars and other similar activities. The department has also initiated the practices of conducting Mock Interviews to be conducted in the final years of their degree in order to inculcate the professional attitude in their academic as well as professional careers. This practice is aimed for the students to be aware of the formal interviews for the job/professional life. Mentorship is the counterpart of the initiative where students choose one of the faculty members as per their choice/inspiration(s) for the mentorship. The students are encouraged to discuss different issues in their life with their mentors in academic, professional and personal life. This practice is aimed at creating a friendly environment in the department in order to smoothly disseminate the aims and objectives of the study programs.
Apart from the departmental engagements, the department is also struggling to engage students with different key institutions via study tours and/or key note speaker briefings. The students are provided to have tour to the Parliament of Pakistan as well as other important places/institutions. Apart from the study tours meanwhile the course of degree, the students are provided the opportunity for the final year recreational tour from the university side. All of such activities help the students to build strong friendly and healthy environment for their studies. The department is striving to boost such activities for the growth of the students. The department is also engaged in creating internship opportunities for the students in different key institutions in order to have an applied grasp over the theoretical concepts.
Along with the theoretical knowledge provision, the department is struggling to inculcate strong research and analytical skill among students of different degree programs in such a manner that they are able to have research on the local level issues. This is aimed at achieving the goal of the role of the department in addressing the social issues in the contemporary development practices.