The year 2007 was proved as an eventful for the judiciary of Pakistan because Iftikhar Chaudhry, Chief Justice of Pakistan, started to assert the power of the judiciary. He vehemently tried to make the judiciary only and the real institution of enforcing the law for the liberty of the people. However, under tremendous pubic pressure and lawyers' movement, Musharraf had to reinstate the Chief Justice. Now Iftikhar Chaudhry resumed the halted task of taking suo motu actions to provide relief to the public. Against this backdrop, the study traces the causes behind judicial activism in Pakistan and its impact on the liberty of people. The performance of the judiciary in the form of Public Interest Litigation (PIL) to empower the masses is discussed. The study also focuses on the important cases handled by the apex court in the manners that gave the impression of judicial martial law. It is an analytical study where important cases are analyzed to show the power and strength of the judiciary in Pakistan. The research concludes that there is a need for judicial restraint so that the democratic principle of separation of power should be maintained.