The growth of a country can be gaged directly from its growing demand for energy. If the demand for energy is not met in-time then it would severely hamper growth leading to economic meltdown and collapse. Pakistan is a developing economy with a vast potential for industrialization. However, the ever increasing energy deficit faced by the country has led to a severe economic slowdown. Apart from the industrial demand for electricity, transport sector is also a major consumer of energy in the country. This research, keeping in view the importance of transport sector as well as its energy requirements, proposes to utilize solar energy for the development of a solar powered railway transport system in the country. For this purpose, the solar energy potential of Pakistan has been evaluated and a case study for solar powered vehicles is presented, with an aim of utilizing renewable energy resources within the country.