KARACHI - It is the time when world is passing through an era of economic recession. Fortunately, the economies of South Asia so far have had limited impact of financial meltdown as compared with OECD countries. However, to keep our economies on track we have to maintain current level of growth, we drastically need to overcome shortage of energy, which is one of the most biggest challenged faced by the region, these were the thoughts conveyed by the representatives of the SAARC countries during a seminar. According to the studies conducted in the region of South Asia regarding the matter of energy consumption in South Asia as compared to the last two decades, when the energy consumption was 5.8 per cent against low energy production of 2.3 per cent, the demand for energy is growing at a rate of 10 per cent annually which has almost doubled in the last decade. It is note worthy that South Asia has the lowest per capita consumption of energy in the world. The per day energy consumption per person which is less than 1 kilowatt, is much lower than Japan and Germany with 6 kilo watt per person and United States with 11.4 kilo watt per person. Almost 60 per cent of population of South Asia remain without electricity and is dependent on biomass. However, it is estimated that region will have the highest rate of energy consumption by 2010 and beyond. The region of South Asia is facing multiple challenges of sustainable development. The challenges are increasing energy demand, harnessing vast local natural resources, import substitution, making available cleaner and cheaper energy, developing an inter and intra-regional market and an energy grid while exploiting the economy of scale, reforming an inefficient power sector and attracting private investment, conserving natural resources and environment. Higher rate of growth of ECO population and urbanisation in the South Asian region have resulted in higher consumption of energy well above the world average of OECD rates. If South Asian economies are to grow at a higher rate and overcome poverty and backwardness, they will have to grapple with the energy crisis not only at their respective national levels, but also collectively at inter regional and intra-regional levels. It is pertinent to mention here that the region has so much potential and manpower that it can put efforts to fight the dominance of Europe and other developed countries. But the situation of security and interaction between the countries need serious consideration. Most of the countries in the region have sombre conflicts with each other. These conflicts need serious consideration and their solutions should be welcomed to get peace and prosperity in the region. The region needs to join hands together to emerge as strong continent in order to compete with rest of the developed world.