Unlike non-renewable energy resources, biogas is providing greener energy and has no contribution to global warming. Keeping in view the current situation of energy shortage it becomes necessary to fully utilize biogas potential in Pakistan to fulfill energy demand in the country. Study shows that biogas is economical in term of expenses and having positive environmental impact. Farmers should be educated to the use and benefits of biogas in order to reduce burden on non-renewable energies and animal excretes should be used properly to make it useful for producing biogas and bio fertilizer. The biogas provides greener energy which will keep the planet green and will help to stabilize ecosystem. Biogas plant should be installed on commercial scale for generation of electricity to overcome shortfall of electric power and production of bio fertilizer. Pretreatment techniques should be adopted to improve the efficiency of biogas plant on commercial scale.