The paper reports on a research study conducted to find out the funding situation of large libraries in Pakistan. It considers their funding sources, satisfaction with present funding, funding needs and the activities for which they demand more funding. The methodologies used included a literature review and a questionnaire survey. The results reveal that libraries in Pakistan have been provided funds without the use of any formula. Provincial governments are the major source of library funding in the country. Libraries also receive funds from the federal government and from their parent institutions. Some libraries also generate their own funds, which include endowments and bank profit (interest) on library security money. Most of the libraries are dissatisfied with their present funding. Among them college and university libraries are more dissatisfied. Libraries demand large increases in their budgets to fund a variety of services including the purchase of the latest materials, the use of modern technology, the improvement in professional status, the organization of materials and the improvement of the standard of library services.