Democracy is a “word” which has common meaning in entire world but it has to face different challenges whether it is in established democratic states or in the developing democratic states. Understanding of democracy is associated with the credibility level of the institutions. It would be correct to say that the democratic regimes have more potential to meet the challenges of states as compare to authoritarian regimes. Since independence, Pakistan has problems in democratic transition process although it has tasted all forms of government. No doubt in saying that political leaders are in continuous struggle to grip the problems of democracy in Pakistan but still their efforts are not producing the required results. Process of democratization could not be successful unless the attributes of democracy are properly examined and addressed. In Pakistan, the authoritarian regimes had introduced controlled democracy whereas the political regimes had neglected the basic concepts of democracy. Institutionalization process in Pakistan is week because the political culture is not strong. Each segment of society is important to consolidate the democracy. It is the civil society which will point out the inability of institutions, weakness of the institutions and the corrupt leadership. Effective role of judiciary could conclude the performance of the institutions. Efforts are done to control the judiciary by the military and political leadership time to time. The political imbalance has reduced the efficiency level of the institutions within Pakistan. Instead of owing the credibility of the institutions, the attention as spayed to personal power gaining strategy which had weakened the institutionalization process in Pakistan. The political and constitutional history of Pakistan is filled with democratic compromises which altogether damaged the leadership. Soft corner preferences at the expense of democracy should not be tolerated. Now there is growing feeling within all stake holders of state that the weak institutions could not be able to cope the current challenges.