In Pakistan, there exists valuable technical and entrepreneurial capability that could be used to take full advantage of space benefits for national economic development. However, the country has not yet become a full spacefaring nation as compared to some other States. At national level, there is a strong realization to uplift national space program and many initiatives are being taken. However, lack of political will, interest in space related public policies are the main hindrances to formulate national space laws. The existing general national laws of Pakistan are somewhat relevant to outer space exploration and use, however, lack in full and systematic support of new developments as compared to various spacefaring nations. These are the challenges that must be addressed by Pakistan in order to legislate and to revisit its present structure, both legislative and decision-making, for outer space activities. This paper critically analyzes the domestic legislative hurdles and challenges with a view of recommending the adoption of relevant national laws and regulations in order to develop and sustain a full space economy as well as to implement Pakistan’s international obligations, in line with some other States.