Abstract
Energy sector plays a key role and a dominant factor for the economic growth of country. This research article compares the relationship between energy consumption and economic growth. In Pakistan, main sources of energy generation are primarily contingent on traditional fuels and its large percentage is imported and also linked strongly with Gross Domestic Product (GDP). In fact most countries, especially underdeveloped, relies more on oil to meet energy demands but if affects the economy unfavorably. Its import in a great way also affects the nation indirectly by causing unexpected inflation. On oil, Local traditional alternative fuels must be preferred to maintain the economic growth. In this research article, energy model Long-Range Energy Alternatives Planning System (LEAP) has been used in various scenarios to find out energy demand for 2013 and has predicted the demand till year 2040. This analysis uncovers and postulates the new postulates for the think tanks to find out best alternatives headway of energy sector of Pakistan to overcome on energy deficiency in coming years.
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