The Department of Geology was opened in 1951 offering a geology course at the F.Sc. level. It was discontinued in 1953 after the completion of only one batch of students. In 1952 the Punjab University opened an independent Department of Mineralogy under a UNESCO-Pakistan Government collaboration program. In January 1954, the department was reconstituted as the Department of Geology and Mineralogy. Later, in 1979 the Department was elevated to the status of an Institute.
University of the Punjab made an educational institution license agreement with Petroleum Experts Limited, Scotland, UK for MOVE software program University of the Punjab acknowledges the Petroleum Experts on donating 10 licenses of each program i.e. MOVE 2D/3D kinematic, Geomechanical Modelling, Sediment Modelling, Fracture Modelling, Fault Response Modelling, Fault Analysis and Stress Analysis. It is worth mentioning that the Petroleum Expert provided the licensed software program(s) free of charge and has donated the equivalent of £1,601,839.98 to the Institute of Geology, University of the Punjab.