The gross domestic product (GDP) of Pakistan is deteriorating by power shortage. The floating PV (FPV) on lakes and dams can address this problem by generating energy at cheaper rates and reducing evaporation of water at the same time. The best location is selected by comparing the available solar resources, nearby load, storage of land, and performance parameters such as energy yield (EY), capacity factor (CF), levelized cost of energy (LCOE), and net present cost (NPC). The analytic hierarchy process (AHP) shows that the best location for the FPV in Pakistan is Chinna Creek in the megacity of Karachi. The global horizontal irradiance (GHI) in Chinna Creek is 6.1 kWh/m2/day, where land is scarce. This site can generate electrical energy by the FPV system at an energy yield of 2345 kWh/kW, which is 8.6% higher than the land-based PV (LBPV) system. The total national installed capacity (IC) of Pakistan in 2017 is 28 GW, while the analysis shows that Pakistan has capabilities of 190 GW IC in the form of FPV systems. A detailed analysis of the FPV system and its comparison with the LBPV is provided as a guideline for policymakers.