Pakistan is an energy deficient country, where a large fraction of the population still does not have access to modern day energy services such as electricity. This is due to very limited fossil fuel resources and poor economy, which restrains the import of fossil fuels on a large scale. To overcome energy shortage, Pakistan needs to develop its indigenous energy resources like hydropower, solar and wind. Pakistan lies in an area of one of the highest solar insolation in the world. This vast potential can be exploited to produce electricity, which could be provided to off-grid communities in the northern hilly areas and the southern and western deserts. Applications other than electricity production such as solar water heaters and solar cookers also have vast applications. All this will help in both reducing the import of fossil fuels and dependency of people on fuel wood, which in turn will provide some respite for the dwindling forest reserves of Pakistan. Accordingly, the status and outlook of solar energy use in Pakistan is discussed in this paper. In addition, the role of R&D organizations in the promotion of solar energy technologies in Pakistan is also presented including a description of some proposed projects. It is concluded that the current infrastructure has not been able to advance the status of solar energy of Pakistan. Significant efforts are needed to effectively utilize this cheap renewable energy source.