The aim of the study was to determine optimum dietary energy level during the last trimester of pregnancy for Sahiwal heifers in subtropical Pakistan. Sixteen Sahiwal heifers, 5-6 months pregnant, were assigned to four dietary treatments with four heifers on each treatment. Isonitrogenous (CP = 14.1%) diets having varying energy, namely, ME 88%, ME 100% (Control), ME 112% and ME 124% of NRC recommended level for pregnant heifers, were fed until calving. All were fed a similar diet after calving. Precalving weight gain was highest (P < 0.05) in heifers fed ME 112 and 124% (486 ± 13 and 497 ± 5 g/day, respectively) followed by ME 100% (444 ± 7 g/day), and the lowest weight gain was recorded for ME 88% (397 ± 8 g/day). A similar trend was observed for feed efficiency. Body condition score at calving in groups ME 124% and ME 112% was higher than ME 88% and ME 100%. Nutrient digestibility, birth weight of calves and milk composition except fat content were not influenced by energy levels. The highest daily milk yield was observed in heifers fed ME 100% followed by ME 112, 124, and 88%. We conclude that the NRC recommendation is applicable to the subtropical region.