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Requirement elicitation is the actual description of the system that the software developers follow in the earlier stages of development process. It is one of the most important and primary part in developing a new application or project. It describes what a system should do and what it is capable of doing. There are some essential requirements of a system that must be met for its correct functionality. Many software systems fail due to the wrong requirement elicitation practices or poor requirement elicitation. Without the help of elicitation, it is impossible to find out the needs and the requirements of the user. In Pakistan software industry, requirement elicitation practices are not followed. In this paper, we have analyzed the issues and challenges being faced by the Pakistan software industry due to the poor requirement elicitation process. The identified issues in requirement elicitation process include a change of scope, volatility problem, change in user needs, understanding problem, uncertain requirements, communication problem, and missing requirements.