One of the greatest challenges of the 21st century is to fulfill the growing energy needs sustainably and cost-effectively. Among the different sources of energy, biodiesel is one of the alternative energy sources that has tremendous potential to become a major mainstream renewable energy mix. Jatropha is an important raw input for biodiesel that provides an ecological and sustainable solution for emerging greenhouse gas emissions over the other biomass feedstock. This paper critically evaluates different factors and presents a SWOT analysis (strengths, weaknesses, opportunities, and threats) and barriers to the adoption of Jatropha biodiesel. In Pakistan, the estimated production of Jatropha biodiesel is expected to be 2.93 million tons, that are calculated from available barren land and possible shortlisted suitable areas for Jatropha plantation. It is ~25% of the total import (11.84 million tons) of petroleum products, which can save ~$2 billion USD reserves of Pakistan. The cultivation of Jatropha on barren land is an environmentally and economically lucrative approach for Pakistan. This study has real implications for developing a policy framework related to the environment and socio-economic feasibility of Jatropha biodiesel production in Pakistan.