Pakistan now days facing many issues and challenges which pose threats to stability and democratization, and ethnicity one of them. In this research we analysis how ethnic diversity damages the roots of democracy in contemporary Pakistan. Does Pakistan need to implement and preserve Consociational theory to practice democracy? If therefore, what Consociational measures would be more likely to accommodate ethnic minorities? This research paper attempts to answer these questions looking thoroughly at the ethnic composition of Pakistan, the role and strength of the Pakistani Federation towards managing of diversity, and the measures of power sharing presented by Lijphart’ s Consociational democracy.