The recent energy shortfall in Pakistan has prompted the need for the development of hydropower projects to cope with the energy and monetary crisis. Hydropower in the northern areas is available yet has not been explored too much. Focusing on the sustainable development goal (SDG) “Ensure access to affordable, reliable, sustainable and modern energy”, thirteen proposed sites were selected from upstream to downstream of the Hunza River for analysis. The head on all the proposed sites was determined by taking the elevation difference between the proposed turbine and the intake at all sites. The discharge on all proposed ungauged sites was determined using ArcGIS for watershed delineation and the area ratio method along with Soil Conservation Service–Curve Number (SCS-CN) by using gauged data of Hunza River provided by Water and Power Development Authority (WAPDA) Pakistan at Daniyor bridge Gilgit, Shimshal and the Passo tributaries of Hunza River. The Location Search Algorithm (LSA) approach used a multi-criteria decision-making tool (MDM) to make a decision matrix considering the location and constraint criteria and then normalizing the decision matrix using benefit and cost criteria, the relative weights were assigned to all criteria using a rank sum weighted method and the sites were ranked on the basis of the final score. The results revealed that Hunza River has a significant hydropower potential and based on the final score in the LSA approach, proposed site 13, site 4 and site 9 were concluded as the most promising sites among proposed alternatives. The proposed methodology could be an encouraging step for decision makers for future hydropower development in Pakistan.