Out of the climatic variables such as temperature, humidity, precipitation, cloud cover, etc., electricity demand has been found most responsive to changes in temperature [Parkpoom and Harrison (2008); Al-Hamadi and Soliman (2005); Hor, et al. (2005)]. According to National Aeronautics and Space Administration, the decade from 2001 to 2010 was the warmest worldwide while the rise in surface temperatures of South Asia region by the end of the century is projected around 3.3oC average annually (IPCC);1 not only are the average temperatures rising but the range of extreme temperatures is also widening. Increase in temperatures can affect human lives significantly; the present study focusses on examining the impact of climate change on demand for electricity in Pakistan.