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The population of Pakistan is increasing rapidly and hence the energy demand. Since ninety׳s, people of Pakistan has been experiencing load shedding because of the intense shortfall throughout the country. Pakistan, being an agricultural country, has a lot of potential of renewable energy sources especially biomass. The thing is to utilize the potential in a right direction. This paper presents the policy direction to get rid of the current energy crisis in the country through utilization of different types of biomass. The animal manure, municipal solid wastes and the crop residues are the main biomass sources in the country. This study also focuses the potential of main biomass sources present in the country and its technical routes for the production of bioenergy. The design parameters for standard bioreactor of gasifier and anaerobic digestion and their economic comparison are highlighted with respect to Pakistan environmental conditions. The development of anaerobic digestion technology is reviewed critically. This paper also discusses the different scenarios for the use of biomass sources in urban and rural environment. This verifies the use of biogas energy as the cheapest and the safest way to remove the crisis from the country. The stand-alone biogas plants should be constructed throughout the country where there is not electrification infrastructure exists. [ABSTRACT FROM AUTHOR]