The Applied Economics Research Centre (AERC), University of Karachi, was established in 1973. The major functions of the Centre are policy oriented Core/Academic Research, Contract Research for clients, post-graduate teaching and providing advisory services to the government. The Centre undertakes research on issues in applied economics with a focus on urban and regional economics, agriculture economics, human resource development,public finance, poverty, health and nutrition, industrial economics, trade, environment and gender issues. Research is based on primary data collection carried out by AERC through surveys and analysis of secondary data from published sources. With subsequent growth of the Centre, its activities have broadened to include advance training of economists from all parts of Pakistan. A major development in this regard was the introduction of its own MAS, MS/ MPhil. leading to a Ph.D. Programme in 1977. Advisory services are provided to the federal, provincial and local governments through participation of AERC staff in Advisory Bodies, Working Groups and Task Forces.

The Centre’s research work is disseminated to policy makers and interested audience through its publications. It publishes a Research Report Series, a Discussion Paper Series, and an internationally refereed bi-annual journal,  Pakistan Journal of Applied Economics.

Over the years the Centre has expanded considerably and now employs over 30 full time economists holding PhD and M.A./M.Phil. degrees from leading US, British and other foreign universities and with qualifications from Pakistan. The research staff is ably assisted by specialized administrative staff.  Institutionally, this growth in capacity, size and scope has led to the Centre being awarded the title of Institute of National Capability in Applied Economics by the Higher Education Commission, Pakistan.

The AERC is governed by its own Statutes, Service Rules and has its own Board of Governors with representation from the Federal and Provincial Governments, State Bank of Pakistan, University of Karachi and other institutions. All appointments at the AERC are governed by the Service Rules.  The AERC is a public sector institution and is exempted from paying income tax.

The AERC has a rapidly expanding Library which subscribes to over 200 journals and has over 30,000 books in economics and related areas; a well equipped computer centre with latest software capacity to analyze large data sets and email and internet facilities for staff and students and the Rangoonwala Conference Hall which is regularly used for seminars and conferences.