In this article, the current energy consumption of Pakistan is presented and the issue of security of electrical energy supply is discussed. The power sector has been looked from variety of aspects such as, demand and supply gap, diminishing energy sources, energy security, and increasing energy costs. Furthermore, the status of energy and potential of renewable sources of energy has been discussed as sustainable alternative. In addition, the roles of different sectors in the promotion and development of renewable energy technologies have been discussed. The renewable energy future prospects are encouraging in Pakistan with a total renewable energy potential of about 167.7 GW which is more than enough to meet the total electricity demand of the country. This vast potential of renewable sources of energy could be utilized to overcome the energy shortage which has not been utilized properly due to lack of policies and infrastructure. The diversification of existing energy resources and exploration of new sources is an important aspect to be considered in order to have a sustainable power development and its implementation in the country.