Provision of dynamic guidance services is an important aspect of any educational system of a country. Because of changes in the life style of people and working patterns in various sectors due to scientific and technological developments, several problems have also come up which are linked to various aspects of education, vocational training, social life, political system, health and well-being, religion-moral and spiritual values. This paper focused on improvement of guidance services in Pakistan with a special reference to open and distance learning -- the Allama Iqbal Open University, since the presence of a proper system of guidance becomes even more crucial when the element of distance becomes part of the educational process. Main objectives of this research were to study the quality status of guidance services at Allama Iqbal Open University and some measures for improvement. The present study entails a qualitative research of the guidance services at AIOU for measures that can be taken to improve the existing framework of guidance services at the Allama Iqbal Open University. The current guidance services at AIOU need to be updated and redesigned.