Earlier the court had convicted him for contempt on April 26 because he refused to ask Swiss authorities to reopen some corruption cases against President Asif Ali Zardari.
Citing the conviction, Chief Justice Iftikhar Muhammad Chaudhry said that Gilani has become disqualified from being member of Parliament and he also ceased to be the prime minister of Pakistan with effect from the day that he was convicted.
The court asked Zardari to take the necessary steps for continuation of democracy. This means that Gilani has to be dismissed if he does not quit on his own.
However, it does not look like Gilani will be resigning anytime soon. His lawyer Fawad Chaudhry asserted that only the country's Parliament can dismiss the prime minister.
Pakistani media later reported that either M Shahbuddin or CA Mukhtar is likely to be selected as the new Prime Minister.