Pakistan is a developing country having a population of approximately 199 million and coping severe electricity crisis for nearly a decade. The electricity shortage during year 2014 remained in excess of 6000 that was estimated to be between 1,000 and 2,000 MW in 2007. This situation has not only adversely affected its common population i.e. domestic consumers facing 12 hours electricity outages but also various industries which have been either shut down or have slowed down the production. These crises over the time have worsened instead of improving supply and distribution of electricity. As such, now it is need of the hour to undertake output based projects which should deliver as soon as possible. Alternatively these crises may worsen in coming years with increase in demand. Dealing with this challenge the present government announced the new power policy in 2013. The goal of this power policy is to develop electricity generation capacity that can meet nation’s energy demand appropriately. To achieve this goal on long term basis government has undertaken various power generation projects throughout the country with focus on low-cost indigenous resources. This paper provides a review and analysis of the power policies of Pakistan and various power projects currently undertaken or to be undertaken as per governments’ plans to overcome the electricity crisis.