Energy is considered the backbone of the economy of any state. Similarly, the economy of Pakistan is heavily dependent on energy. Pakistan is an agricultural country, and it earns foreign exchange by exporting agricultural commodities. However, Pakistan is facing an energy crisis due to multiple factors. This research will provide a historical analysis of the energy crisis in Pakistan. This energy crisis has affected the industrial sector and economic growth of Pakistan. This paper will highlight the different factors that have contributed to the rise of energy demand in the country. The dynamics that have caused the failure of successive governments in Pakistan to anticipate the constantly increasing demand for energy are also discussed in this research. The long hour's load shedding across the country has affected the lives of the common man in general and the industrial production in particular. This paper will also highlight the impact of the energy crisis on the economy and industrial sector of Pakistan.