The Islamic Republic of Iran has made use of a particular method in forming its economic system. This has resulted in the emergence of a certain kind of economy that is considered not so distinct from the capitalist system of economy, while the principles of the economic system of Islam with its relevant objectives are radically different from the capitalist system. Since the establishment of such an economic system in Iran, the Islamic Republic of Iran has not yet succeeded in uprooting poverty and achieving nationwide economic justice. A sort of economic or financial corruption is prevailing. This paves the ground for the opponents of the Islamic Republic to cast doubt on the achievements of the Islamic Republic of Iran. Therefore, we are encountered with the question why the economic system of the Islamic Republic of Iran has undergone such problems. In answering the question, though one should not ignore the fact that the Islamic Republic is under pressure by its enemies, the hypothesis in this research work is this: the method and mechanism by which the economic system was formed in the Islamic Republic of Iran is the root cause of this miserable economic condition. This clearly shows that there is a need to sweeping reforms in the method of discovery and planning of the economic system of Islam. The research work seeks to find answers to the aforementioned question and establish the hypothesis raised in the research by having recourse to the text analysis method, descriptive-analytic method as well as library method in collecting information. The rational method is also made use of in this regard.