The aim of this study was to explore the status, collection, and challenges of community libraries in the capital of Pakistan. A purposive sampling technique was used for data collection from 12librarians/library in-charges working in these community libraries. This study found that the collection of reading materials in the community libraries was between 4000 to 7000 and offered Web-OPAC, interlibrary loan, books borrow services. These libraries have proper websites, classified books, adequate sitting arrangements, and a heating and cooling system to support the community. Though, these libraries were facing some major challenges such as lack of sufficient funds, lack of training opportunities for LIS, old library building, lack of attention of Government, and non-availability of electronic resources. Similarly, uncomfortable furniture and lack of knowledge about new library trends among librarians were the major obstacles in the effective utilization of community libraries in the capital of Pakistan. Through reliable research work, the findings of this study highlight certain recommendations for developing these community libraries into learning resource centers that could support truly the information needs of the community at large.