Geothermal energy, derived from the Earth’s internal heat, is a renewable and sustainable source that can provide continuous electricity and heating. While successfully developed in countries such as the United States, Iceland, and Italy, its use in Pakistan is still negligible despite favorable geothermal conditions. This review aims to assess the potential of geothermal energy in Pakistan globally, finding technological opportunities, barriers, and policy needs. A literature-based method was applied, analyzing published research on geothermal resources, extraction techniques, and international case studies to prove benchmarks for Pakistan’s energy sector. Findings show that Pakistan exhibits geothermal gradients ranging from 1.5°C/100m to 4.1°C/100m, with wellhead temperatures reaching up to 180°C, making it suitable for binary and flash steam power systems. Furthermore, more than six hundred abandoned oil and gas wells in the Indus Basin offer opportunities for cost-effective geothermal retrofitting and integration with carbon capture technologies. However, high drilling costs, lack of supportive policies, and limited awareness constrain progress. Global advancements, including Enhanced Geothermal Systems, binary cycle plants, and the use of supercritical CO 2 as a working fluid, prove improved efficiency and reduced environmental risks. The review concludes that, with strategic investment, policy reform, and the adaptation of proven technologies, geothermal energy can strengthen Pakistan’s energy security, reduce its dependence on fossil fuels, and contribute to the global transition toward sustainable energy.