This paper examines communicative language teaching (CLT) and its significance in terms of language teaching and learning. The actual purpose of the paper is to explore the causes of failure of CLT in Pakistan and other developing countries in order to suggest the ways to make it successfully effective in the context. It is found that contextual problems such as overuse of traditional methods of teaching such as lecturing and large classes always come into clash with the use of CLT in the developing countries such as Pakistan because CLT is in fact a method developed and used in the developed countries where the contextual issues found in the educational institutes are rare as compared to developing countries.