This paper highlights the importance of energy in the determination of growth for economy of Pakistan. This study has been taken for the period of 1972-2015. Along with energy consumption some other important variables are also put into investigation. The Johansson co-integration estimation technique has been used to estimate the required impact. The results show that energy consumption contributed positively and significantly to long run economic growth. While the said impact is statistically insignificant in the short run, the study suggested on the basis of results that energy sources should be explored to boost which may possible to satisfy the energy need of the country and to get guaranteed economic growth in the long run. Therefore, Government should pay special attention toward the country’s energy sector to stabilize the economy which assures prosperity in the country.

This study examined household energy consumption pattern in Pakistan using Linear Approximate Almost Ideal Demand System (LA-AIDS). Price and expenditure elasticities estimated for the energy demand using a household income and expenditure data of the year 2011-12. The energy consumption expenditure pattern of rural and urban region is different. The study reveals that electricity is the most important and highly consumable source of energy for the household living in the country. Electricity and natural gas are the highly consumed fuel in the urban areas, whereas, electricity and firewood in the rural areas. The energy consumption expenditure is inelastic with respect to changes in income except for firewood for urban region. All the estimated expenditure elasticities of the energy types were found less than one indicating that energy consumption is the necessity for the household