The optimal dairy management programs are based on rearing of heifers at a low cost without compromising growth rate. The aim of this study was to investigate the effect of dietary protein and energy level on growth and metabolic parameters of Nili-Ravi buffalo heifers. The experiment was conducted with 30 female buffalo calves (6–8 mo age) divided randomly into 3 treatment groups (n = 10/group). The animals in treatment A, B and C were offered 3 different levels of concentrate (CP 17% and 2.6 Mcal ME/kg) at 0.5%, 1% and 1.5% of body weight, respectively. In addition to this all animals were given chopped green fodder (sorghum and maize) and fresh water ad-lib. All data were collected on individual animals for a total of 8 mo. As designed, the average daily protein and energy (585.94 ± 15.36 g, 13.08 ± 0.34 MJ/kg) intake was greater in treatment C and lower (374.70 ± 10.09 g, 9.56 ± 0.26 MJ/kg) in treatment A. The differences in intake did not affect (P > 0.05) average daily gain of heifers (497.32.69 ± 17.92, 503.63 ± 19.09 and 532.77 ± 20.67 g/d). Thus, feed efficiency estimates were greater for treatment A (0.135 ± 0.004) as compared with treatments B and C (0.113 ± 0.003, 0.108 ± 0.004). Dietary treatments did not affect (P > 0.05) blood profile but serum urea concentration was greater in treatment B and C (50.08 ± 2.05, 51.41 ± 2.29) compared with treatment A (42.34 ± 1.59). Increasing nutrient intake had no effect (P > 0.05) on the digestibility of organic matter, fat, ash, ADF. However, the digestibility of diet DM, crude protein and ADF was greater in treatment C (71.14 ± 0.96, 65.85 ± 0.88, 56.09 ± 1.02%) as compared with treatment A (66.06 ± 2.32, 61.21 ± 1.72, 51.43 ± 2.13%) and B (67.22 ± 1.09, 62.01 ± 1.20, 52.91 ± 1.32%). The cost for production (USD) of per kg gain was higher in treatment C ($2.42) and lower in lower in treatment A ($1.34) and B ($1.96), respectively. As increasing dietary concentrate intake had no effect on growth rate, the estimated efficiency of utilization of nutrients was better and cost per kg gain was lower with the 0.5% concentrate inclusion. Thus, this level of concentrate in the diet at a rate of 0.5% of body weight appears most economical for rearing Nili-Ravi buffalo heifers from 6 to 14 mo of age.