Sufi shrines are largely contributed to politics and in the economy of Pakistan. Sajjada Nasheen use Sufi shrines for financial and political benefits and for power. In the rural areas of Pakistan, poor, uneducated people fully support Sajjada Nasheen not only in politics but also financially more than their capacity. This study aims to investigate the role of Sufi shrines in the local community, the role of Sufi shrine in local politics and to explain the political economy of shrine. This study follows the qualitative research strategy by employing in-depth interviews from different stakeholders. Thematic analysis has been used to analyze the data. The findings of this study show that the Koreja family used the Shrine for their benefits. They are getting benefits from this shrine and never work for the shrine’s development and for spreading the teachings of Khwaja Ghulam Farid. Sajjada Nasheen and family changed to behave not only with local people but also with visitors of the shrine. That is the reason that the number of visitors to the shrine is decreasing. Sajjda Nasheen and his family are enjoying the illegal income of shrine with the collusion of the Auqaf department. Koreja family is involved in politics by using shrine with the help of local politicians. This study will be helpful for policymakers to formulate a policy and implement it to resolve the problems being faced by the local community and these implementations may be used for the development of society and the political economy of the shrine. Supervisor:- Dr. Zulfiqar Ali Co-Supervisor:- Fahd Zulfiqar