During the past decade, few research work discuss regarding the issues associated to industrial relations system, unionism and Growth, collective bargaining in Pakistan, but this dissertation contributes to the literature in a number of ways. This empirical analysis examine three new areas related to Trade Unions in Pakistan i.e. Trade unions, production process and economic growth in Pakistan, Trade Unions, Economics of Freedom and Growth, and finally Trade Unions and Industrial Relation systems in Pakistan. The purpose of this thesis is to analyze the role of Trade Unions in diverse aspects. The first section is related with. union workers productivity and its impacts on economic growth. The effect of unions on productivity has become an interesting topic in recent years, because it is encouraged by the claim of Harvard economists that unions tend to increase productivity through their collective voice/ institutional response role. Unions, on balance, increase productivity in unionized enterprises by reducing labor turnover, enhancing worker morale and cooperation, providing efficient collective voice in negotiating workplace characteristics and grievance resolution, and pressuring management into stricter efficiency. Using data of Trade unions, investment, Real GDP and inflation from 1950-2010, we used different econometric estimation techniques i.e. Johnson co integration, vector error correction model (VECM), VAR Model, ARDL and Granger- Causality to test our hypothesis. Our main findings demonstrate that all the variables are showing both long-run and short-run dynamics. Data for Pakistan shows that unionized workers are more productive and contributing more towards economic Growth. Second Section of dissertation is related primarily with economics of freedom. The basic intuition behind the empirical investigation carried out is that how these Trade Unions with the presence of Economic Freedom and Democracy lead to the economic Growth. Democracy enables Trade unions to work, due to the Democracy in a country there is Economic freedom which results in settlements of Disputes. As we know that investment needs both the above two components to function well. So the decrease in disputes will increase investments which finally give a positive signal to Economic Growth i.e. how this Economic Growth and Democracy affect the Trade Unions. Productivity is related with the Growth i.e. positive Growth shows productivity and via-viz. Using data of Trade unions, Economics of freedom, Democracy, investment, Real GDP and industrial output from 1950-2010, we used different econometric estimation techniques i.e. Johnson co integration, vector error correction model (V ECM), VAR Model and Granger- Causality to test our hypothesis. Our results demonstrate that all the variables are showing both long-run and short—run dynamics. Results demonstrate that economics of freedom lead to the increase in Trade unions and investment which support our hypothesis. Supervisor:- Dr. Zafar. Mueen. Nasir