In this paper the energy crisis of Pakistan is discussed with comparative analysis due to a continuous and wide gap among available system producing capacity and demand. The deteriorating of shortages (power) has become a main problem in the view of politics, showing the difficulties for persons and companies. It looms to weaken the reliability and legality of government and to additional pressure the societal fabric of the nation. The energy crisis did not arise suddenly. It is the straight consequence of impulsive and irresponsible energy policies over the last three years. These energy policies have obstructed the growth of low and plentiful domestic energy resources. They have also caused in very incompetent fuel mix selections, lack of energy and security of the economics. The country's energy insolvency is eventually due to huge official and failure of the governance. This paper analyzes the issues confronting Pakistan's energy sector and classifies the key elements of a hidden policy reply to address the nation's tough energy crisis. In order to assess these diverse renewable energy alternatives a comparative analysis of SAARC countries is performed using a standard criteria framework that are likely to be decisive in the making of decisions. The assessment shows that completely the renewable energy system conformations are not economically viable in the country while the renewable energy local resources could bring down the price of energy. An improved understanding of the whole processes by which innovation occurs is important, both theoretically and to inform the policy makers to support innovation to attain more sustainable technologies.