Pakistan is experiencing an undersupply of electricity, causing load shedding several hours per day due to the adherence to conventional energy resources having quantitative and environmental limitations. Fossil fuels generate more than half of the country’s total electricity, but they will ultimately run out due to their limited supply. Their combustion emits greenhouse gases, posing environmental threats. Since the world is tending toward efficient and sustainable alternative methods for harvesting energy from nature, Pakistan has also been investigating an elevated deployment of renewable energy projects. This paper presents a critical analysis of the present energy sector of Pakistan along with global scenarios. Pakistan relies on mainly thermal, hydro, and nuclear energy for power generation. National solar, wind, geothermal, and biomass resources have not been extensively explored and implemented. This paper provides an insight into the potential of these resources in Pakistan to generate electricity for the national grid on a large scale. It focuses on biomass energy, which can be harnessed from bagasse, poultry waste, and municipal waste for power production, and biomass-based fuel for industries and transportation. It concludes that biomass is the most sustainable, available, implementable, and environment-friendly resource that can be utilized to lessen the energy demand and supply gap in Pakistan.