The purpose of this paper is to demonstrate the impact of Islamic work ethic (IWE) on innovation capability (IC) and sharing knowledge (SK) playing moderate role between their relationships in the Public sectors' organizations in Pakistan. The valid and reliable scales were used for measuring the IWE, IC and SK. 150 questionnaires were distributed among the officers of grade 17, grade 18, grade19 and grad 20 in different public sectors' organizations and 102 officers responded among them. The

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... sults (Adjusted R square = 0.48) founded that there was significantly positive relationship between Islamic work ethics on innovation capability and when sharing knowledge enter as moderator between their relationships the result (Adjusted R square = 0.57) was also positively significant on Innovation capability and this results (R square change 0.09) shown that knowledge sharing was played moderate role, hence all the hypothesizes of this study were significantly confirmed at p value (p < 0.001). While the study was limited to the Pakistani public sectors' organizations and sample size is too short, it has considerable implications for the development of a bright workforce in other cultures and multinational organizations. An interpreting of the commitment of the manpower to the IWE and it's on innovativeness by sharing knowledge as well as helps HR managers in designing the intervention, and implementation of this intervention to bring changes in public sector organizations for development of the employees and organizational effectiveness. In the results there is very strong necessary for the public sectors' organizations in Pakistan as well as other non-western countries that examine the link of IWE and innovation capability by creating flexible environment among employees to share their innovative knowledge with the bosses, colleagues and subordinates. This paper emphasizes on IWE to improve the innovation capability by creating knowledge sharing environment among employees in public sector organizations.