The study emphasizes the need to conserve energy in the developing countries like Pakistan as the huge amount of capital required for investing in electric power generation to sustain the existing rate of growth is not available. Suitable measures if adopted can however save several hundred of megawatts of power in Pakistan. The paper lists the projects being implemented in the Energy Sector of Pakistan with the participation of USAID. In regard to energy conservation, it is suggested to adopt appropriate policies and prices so that conservation is effective. Seven measures are described for energy conservation. The paper concludes that every factory owner, building owner, agricultural producer, and Government official should survey his own domain of responsibility to find areas where energy and money can be saved as all would prosper from improving the energy efficiency.