Animal feed industry is one of the most important segment of the agriculture sector of Pakistan. Due to high ecomic burden on animal producers, there is a need of more efficient consumption of low-grade feedstuff. Ather solution to this problem is the addition of hydrolytic enzymes in animal feed which aid in increasing digestibility and absorption of poor available nutrients. Addition of enzymes in feedstuff results in good energy availability which results in the decrease in the difference between gross and metabolisable energy of the raw material. The basic purpose of this study is to produce lipase with the aim to increase digestibility of feed by using local agricultural by-products.