Pakistan’s dependence on imported fuels has led to a massive electrical shortfall, stifling the country’s socioeconomic growth. Pakistan’s energy gap is between 5000 and 8000 megawatts (MW), with a 6–8% yearly growth predicted, therefore, it needs more sustainable and renewable energy sources. Pakistan uses solar, wind, hydropower, and biomass for renewable energy. Pakistan needs cheap energy to support its economic growth. Most of the world’s energy is currently conventionally produced. The objective of this research is to analyze the opportunities that are afforded by renewable energy sources as well as the role that the government plays in the process of policy formulation. An examination of qualitative data from research works, journals, and government annual performance reports is presented. This study investigates renewable energy sources and government policy. According to the study, renewable energy resources are abundant. The renewable energy plan has no effect on real implementation. This research paper examines electricity restrictions, the transition to renewable energy sources, and Pakistan’s renewable energy policy difficulties. After analyzing the nation’s renewable energy potential, practical implications were made to promote it, for example 1710-megawatt wind installations. There are currently 217-megawatt biogas power stations being developed. Accelerating the energy transition to the nation’s future energy perspectives is a priority for sustainable development.