Divine knowledge is not a passive omniscience watching a fixed script, Iqbal argues, but a creative activity in which the future genuinely pre-exists as open possibility. God has freely chosen to share creative power with finite egos — and without this open universe, neither ijtihād nor any other form of human effort would matter.
Section 6 addressed the problem of time and divine eternity. It established that God's time is 'change without succession' — an appreciative duration that appears atomic only through the creative movement of the ego — and that serial time is born with the act of creation. That section resolved the temporal dimension of God's being. Section 7 now confronts the epistemological dimension: what does it mean to say that God knows? And what does the answer imply for the structure of the future — is the universe a closed system whose every event is predetermined, or an open field of genuine possibility?
The question is forced upon Iqbal by the logic of his own preceding arguments. If the Ultimate Reality is an Ego (Section 5), and if that Ego's relationship to time is creative rather than passive (Section 6), then the most natural next question concerns that Ego's relationship to knowledge. Human knowledge is discursive — it moves through time, encounters objects that exist independently of the knower, and is always relative to a confronting 'other'. Can this model of knowledge be scaled up to God simply by extending it to infinity — by imagining an omniscience that knows everything the way we know particular things, only without gaps? Iqbal's answer is an emphatic no: discursive knowledge, however extended, cannot be predicated of an Ego for whom the distinction between knower and known, between thought and object, does not exist.
The section advances through four major movements. First, Iqbal establishes that discursive knowledge is structurally inapplicable to the Ultimate Ego: because the universe is not an 'other' confronting God but exists within God's creative life, the ordinary subject–object structure of knowledge breaks down at the divine level. Thought and deed, the act of knowing and the act of creating, are identical in God. Second, Iqbal considers the most prominent alternative — the idea that divine knowledge consists in a single, indivisible act of perception that grasps the entire sweep of history in an eternal 'now', as proposed by Jalāluddīn Dawānī, ʿIrāqī, and Josiah Royce. He concedes that this view contains an element of truth but diagnoses its fatal defect: it implies a closed universe, a fixed futurity, a divine consciousness that is merely a passive mirror reflecting a predetermined structure. Third, Iqbal advances his own position: divine knowledge is a living creative activity in which the future pre-exists not as a fixed order of events but as an open possibility. He illustrates this with a striking analogy — the fruitful idea that reveals its applications only through advancing experience, whose possibilities are all present in the mind of its conceiver but not yet intellectually worked out because they do not yet exist as specific possibilities. Fourth, Iqbal draws the consequences for the problem of predestination: if divine knowledge is creative and the future is genuinely open, then creation includes real novelty, and the theological controversy over predestination is exposed as the product of 'pure speculation with no eye on the spontaneity of life'. The section closes with Iqbal's boldest theological claim: that finite egos endowed with the power of spontaneous action are not a limitation imposed on God but a limitation chosen by God — born out of His own creative freedom, whereby He has elected finite egos to be 'participators of His life, power, and freedom'.
The section is pivotal within the lecture's arc. Having established what reality is (ego), what it moves in (creative duration), and how it is structured (spiritual pluralism with degrees of reality), Iqbal must now show that the God who grounds this reality is not an omniscient spectator watching a predetermined script unfold but an active creator whose knowledge is itself creative — and who has freely chosen to share that creative power with finite beings. This is the metaphysical foundation for human freedom and for the concept of ijtihād: if the future were closed, independent reasoning would be a futile exercise in discovering what was already determined. Only in an open universe does thinking matter.