Worldwide modern-bioenergy is getting more attention in terms of policy-support and deployment, however in Pakistan, this resource is not being used to its fullest. Though traditional biomass is being used by most of the rural population, but the use of modern biomass as an energy source is dismally low, which is a result of poor policymaking and its implementation. During the 1970s the first initiative was taken for the development of small scale (household/community level) bioenergy projects in Pakistan. Later, policies were enacted to utilize the bioenergy resources, especially bagasse-powered bioenergy generation. This study reviewed the policies for their effectiveness in the development of bioenergy in Pakistan. Policies are compared for different aspects, including regulatory, fiscal, political and institutional. Furthermore, effectiveness is compared in terms of energy security, environmental impact, economic impact, and energy equity. The comparison has been made based on a total of 26 parameters. Finally, the study presents the challenges and recommendations for policy-making, in Pakistan, for maximum utilization of bioenergy.