Biodiesel is a degradable, environment friendly, efficient alternate energy source. It is extracted from several crops such as sugarcane, corn, palm, soybean, rapeseeds etc., but Jatropha carcus is preferred over other crops because of its economic advantage, high yield per hectare, better returns, sustainable development, and easy holding. Further, it is non-edible perennial crop that grows well in arid regions with marginal soil. In Brazil, India, Vietnam, Ghana, Zambia, and Nicaragua the biodiesel producing activity is highly successful, however Pakistan being energy sensitive and having wide-spread arid areas can also be a plausible candidate for jatropha cultivation. Jatropha not only produces oil (approx 0.2 L/kg) to be used as biofuel, it stimulates economic growth, reduces country's dependence on imports of Petro-diesel, emits negligible pollutants, improves environment, serves as a shield against deforestation/desertification, generates jobs, and provides better livelihood to poor masses in the rural areas. The biodiesel obtained from Jatropha seed is equally efficient to Petro-diesel in performance, and it is being used successfully through blending (10%) with Petro-diesel. Comparsion between Biofuel and Petro-fuel shows that combustion quality (Cetane 51) and the flash point (130 degrees C) of Biofuel as compared to standard Petro-diesel (Cetane 46-50, flash point 50 degrees C) are much higher. Hence the production of biofuel (from Jatropha plants) is considered one of the options to overcome the situation of energy deficiency.