Fossil fuels possess very useful properties not shared by non-conventional energy sources that have made them popular during the last century but unfortunately they are not renewable. Since the oil crisis of 1973, considerable progress has been made in the search for alternative energy sources. Among the candidates, hydrogen holds a pre-eminent position because of its high energy content, environmental compatibility and ease of storage and distribution. Hydrogen can be produced in a variety of ways. Water electrolysis is one of the most utilized industrial processes for hydrogen production. This article discusses advantages and disadvantages of hydrogen energy. Besides, barriers and challenges to hydrogen economy have been summarized. The current energy situation in Pakistan is presented followed by a road map to hydrogen economy in Pakistan. It is concluded that a combination of fuel cells and a hydrogen infrastructure is a way forward to combat the long-term challenges of climate change and energy security for Pakistan. The hydrogen economy potentially offers the possibility to deliver a range of benefits for the country; however, significant challenges exist and these are unlikely to be overcome without serious efforts.