Energy productivity has become an important policy instrument across the globe, as it provide details of energy consumed while focusing on growth, economic diversification, innovative technologies and also efficiency in the use of energy. Its effects are positive on country’s economic growth. This new paradigm allows all economic activities to seize maximum economic benefits and minimize environmental concerns through the optimal use of energy. Its focus goes beyond efficiency and demand management, and includes generation through renewables. Limited Decoupling of Energy and Economy In Pakistan, unlike most of the countries, we can hardly see any decoupling of energy and economy taking place. Since 2000, percentage increase in energy productivity in Pakistan is less than 5 percent. In comparison, since 2000 world’s average energy productivity has increased by about 11 percent; energy productivity in China, India, Malaysia, Japan, United Kingdom, Germany and United States have increased by almost 46 percent, 23 percent, 24 percent, 31 percent, 59 percent, 32 percent and 34 percent respectively. On the other hand, China and even India were much below Pakistan in 2000 and before, but they have improved significantly.