Security Services Contract (Pakistan)
SECURITY SERVICES CONTRACT
Under the Contract Act 1872 | Private Security Companies (Regulation) Act 2020
This Security Services Contract is entered into on [Signing Date] at [Signing City] between:
SERVICE PROVIDER:
[Security Company Name]
NSA Licence No: [NSA Licence Number] | Provincial Licence: [Provincial Licence Number] | NTN: [Security Company NTN]
Address: [Security Company Address]
Represented by: [Security Company Rep]
(hereinafter referred to as the "Security Company")
CLIENT:
[Client Name]
NTN / CNIC: [Client NTN] | Address: [Client Address]
Represented by: [Client Rep]
(hereinafter referred to as the "Client")
1. SCOPE OF SERVICES
1.1 Premises: The Security Company shall provide security services at the following premises: [Premises Description]
1.2 Services: The scope of services shall include: [Services Scope]
1.3 Guard Deployment: [Number Of Guards] at the following shift timings: [Shift Timings]
1.4 Armed Guarding: [Armed Guarding]. Where armed guarding is provided, all armed guards shall hold valid firearms licences under the Arms Act 1878.
2. PERSONNEL STANDARDS
2.1 The Security Company warrants that all guards deployed under this contract shall: (a) be at least 18 years of age; (b) hold a valid police character clearance certificate from the relevant District Police Office; (c) have completed training at an NSA-registered training institution; (d) be paid at least the applicable provincial minimum wage under the Minimum Wages Ordinance 1961; and (e) be registered with EOBI under the Employees' Old-Age Benefits Act 1976.
2.2 The Security Company shall replace any guard within 24 hours upon the Client's written request if the guard's conduct is found unsatisfactory.
3. SERVICE LEVEL AGREEMENT
3.1 Incident Response Time: [Incident Response Time]
3.2 Maximum Guard Vacancy Rate: [Max Vacancy Rate]
3.3 SLA Failure Penalty: [SLA Failure Penalty]
3.4 Incident Reporting: The Security Company shall submit a written incident report to the Client within 24 hours of any security incident at the premises.
4. FEES AND PAYMENT
4.1 Monthly Service Fee: PKR [Monthly Service Fee] per month, exclusive of applicable GST/SST.
4.2 GST / SST: [GST Applicable]. Where GST/SST applies, the Security Company shall issue a valid tax invoice under the Sales Tax Act 1990 or applicable provincial SST legislation.
4.3 Withholding Tax: The Client shall deduct withholding tax under Section 153(1)(b) of the Income Tax Ordinance 2001 and issue a deduction certificate to the Security Company.
4.4 Payment Due Date: Payment is due by the [Payment Due Date] of each month.
5. LIABILITY AND INDEMNITY
5.1 Security Company Indemnity: The Security Company shall indemnify the Client against losses, claims, or damages directly caused by the gross negligence, wilful misconduct, or criminal acts of its guards in the performance of this contract, subject to a maximum liability cap of [Liability Cap] per incident.
5.2 Client Indemnity: The Client shall indemnify the Security Company against losses caused by the Client's own negligence, unsafe premises, or failure to provide safe working conditions to deployed guards.
5.3 Limitation: Neither party shall be liable for indirect or consequential losses. The limitation of liability shall not apply to fraud or wilful misconduct.
6. TERM AND TERMINATION
6.1 This contract commences on [Contract Start Date] and continues for [Contract Duration].
6.2 Either party may terminate this contract by giving [Termination Notice] to the other party.
6.3 The Client may terminate immediately without notice if the Security Company's NSA licence is cancelled, revoked, or suspended under the Private Security Companies (Regulation) Act 2020.
IN WITNESS WHEREOF the parties have signed this Security Services Contract on [Signing Date] at [Signing City].
FOR THE SECURITY COMPANY:
Name: [Security Company Rep]
For: [Security Company Name]
NSA Licence: [NSA Licence Number]
Signature: _________________________ Date: _________________________
Official Stamp: _________________________
FOR THE CLIENT:
Name: [Client Rep]
For: [Client Name]
Signature: _________________________ Date: _________________________
Official Stamp: _________________________
Security Company Authorised Representative
________________
Signature
Client Authorised Representative
________________
Signature
What Is a Security Services Contract (Pakistan)?
A Security Services Contract in Pakistan defines what each party must do under the deal and the consequences of failing to perform.
The Private Security Companies (Regulation) Act 2020 requires every private security company operating in Pakistan to obtain a licence from the National Security Authority (NSA), formerly regulated under the Private Security Agencies (Regulation) Act 1977 and various provincial ordinances. Under Section 4 of the Private Security Companies (Regulation) Act 2020, no person or company shall establish, conduct, or advertise a private security company without a valid NSA licence. Security companies must also comply with the licensing requirements of the relevant provincial authority — in Punjab under the Punjab Private Security Companies (Regulation) Act 2013, in Sindh under the Sindh Private Security Agencies Act 2013, in KPK under the KPK Private Security Companies (Regulation) Act 2015, and in Balochistan under the Balochistan equivalent — as the security industry in Pakistan operates under concurrent federal and provincial jurisdiction.
Security guards deployed under the Security Services Contract in Pakistan are subject to the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 as employees of the security company, not the client. The security company as employer must confirm compliance with the Employees' Old-Age Benefits Act 1976 (EOBI contributions for each deployed guard), the West Pakistan Employees' Social Security Ordinance 1965 (social security contributions), and the Minimum Wages Ordinance 1961 (guards must receive at least the applicable minimum wage set by the relevant provincial Minimum Wages Board). Security guards carrying firearms must be licensed under the Arms Act 1878 and the relevant provincial arms licensing authority — typically the District Magistrate or the Home Department.
The Securities and Exchange Commission of Pakistan (SECP) registered security companies must include their company registration number and NTN (National Tax Number issued by the Federal Board of Revenue) in service contracts. The contract should also specify the NSA licence number of the security company, as clients may face regulatory liability if they knowingly engage an unlicensed security company. The National Security Authority (NSA) maintains a public register of licensed security companies in Pakistan, which clients should consult before engaging a provider.
The Security Services Contract in Pakistan must address liability clearly — the security company is liable for negligent acts or omissions of its guards during performance of duties, but the extent of this liability must be defined by contract. Courts in Lahore, Karachi, and Islamabad have applied Section 23 of the Contract Act 1872 to limit exclusion clauses that are unreasonably broad or contrary to public policy — blanket exclusions of liability for fraud or wilful misconduct by guards are generally unenforceable.
When Do You Need a Security Services Contract (Pakistan)?
A Security Services Contract in Pakistan is required whenever a client engages a professional security company to provide guards or security management services at their premises.
A Security Services Contract is needed when a commercial building, shopping mall, or business park in Karachi, Lahore, Islamabad, or another major city engages a licensed security company to provide access control, perimeter guarding, CCTV monitoring, and visitor management services — sectors where the security industry in Pakistan has grown substantially since the early 2000s.
A Security Services Contract is required when a manufacturing or industrial facility under the jurisdiction of the Punjab Industrial Estate Development and Management Company (PIEDMC), the Sindh Industrial Trading Estate (SITE), or another industrial zone authority requires round-the-clock security to protect plant, machinery, raw materials, and finished goods from theft or sabotage.
A Security Services Contract is needed when a residential housing society in Defence Housing Authority (DHA) Lahore or Karachi, Bahria Town, or a gated community elsewhere in Pakistan engages a security company to man entry and exit points, patrol the community's perimeter, and respond to residents' emergency calls.
A Security Services Contract is required when a hospital, medical centre, or pharmaceutical company engages a security company to manage access control to sensitive areas — operating theatres, pharmacies, and data centres — in compliance with the Pakistan Nursing Council and the Drug Regulatory Authority of Pakistan (DRAP) security protocols.
A Security Services Contract is needed when a government department, autonomous body, or public sector enterprise engages a private security company through the Public Procurement Regulatory Authority (PPRA) procurement process under the Public Procurement Rules 2004 — the security contract must comply with PPRA Rules and include the service level standards and penalty clauses prescribed in the procurement specifications.
A Security Services Contract is required when a multinational corporation, diplomatic mission, or international NGO operating in Pakistan engages a security company to provide close protection, site security, and emergency response services — such contracts must specify NSA-licensed personnel and compliance with applicable international security standards.
A Security Services Contract is needed when a financial institution regulated by the State Bank of Pakistan (SBP) — such as a scheduled bank branch, a microfinance bank, or an exchange company — engages a security company to provide armed vault security, cash-in-transit services, and ATM guarding in compliance with the SBP's Minimum Standards for Managing Risks in Security of Banking Operations and the provisions of the Private Security Companies (Regulation) Act 2020 applicable to financial sector deployments.
What to Include in Your Security Services Contract (Pakistan)
A thorough Security Services Contract in Pakistan under the Contract Act 1872 and the Private Security Companies (Regulation) Act 2020 must contain the following essential elements.
Parties and Licensing: The full legal names and addresses of both parties — the security company (with its NSA licence number, SECP registration number if a company, NTN, and provincial security licence number) and the client (with NTN or CNIC number). The security company's NSA licence must be valid at the time of contracting, and the contract should include a representation that the licence will be maintained throughout the contract period under Section 4 of the Private Security Companies (Regulation) Act 2020.
Scope of Services: A detailed description of the services to be provided — number of guards per shift, shift timings, patrol routes, access control procedures, CCTV monitoring duties, visitor management protocols, and any specialist services such as armed guarding (which requires separately licensed armed personnel under the Arms Act 1878) or executive protection. The client's premises must be precisely described by address and floor plan reference.
Service Level Agreement (SLA): Measurable performance standards — response time to incidents (e.g., five minutes for internal incidents, fifteen minutes for perimeter breaches), maximum vacancy rate (e.g., no more than 5% of deployed posts vacant at any time), incident reporting standards, guard conduct and grooming standards, and consequences of SLA failure. SLA failures should be linked to service credits or price reductions.
Personnel Standards: The security company's obligations regarding guard qualifications — minimum age (18 years under the Private Security Companies (Regulation) Act 2020), police character clearance certificate (from the relevant District Police Office), physical fitness standards, and training completion certification from a training institution registered with the NSA or the relevant provincial licensing authority.
Equipment and Uniforms: Which party supplies uniforms, communication equipment (walkie-talkies, mobile phones), batons, metal detectors, and other equipment. Armed guards' firearm licensing responsibility must be clearly allocated — whether the security company or the client obtains and maintains the arms licence under the Arms Act 1878.
Fees and Payment: The monthly service fee (in PKR), the payment cycle (monthly in arrears is standard in Pakistan), the method of payment (bank transfer to named account, pay order), the applicable federal and provincial General Sales Tax (GST/SST) and Withholding Tax deductions under the Income Tax Ordinance 2001 (security services are subject to withholding at source), and the fee revision mechanism.
Indemnity and Liability: The security company's indemnity to the client for losses caused by the negligence, wilful misconduct, or criminal acts of deployed guards, subject to the liability cap. The client's indemnity to the security company for losses caused by the client's own acts or omissions. Public liability insurance requirements — security companies in Pakistan are increasingly required by large clients to maintain public liability insurance from a SECP-licensed insurer.
Termination: Notice periods for termination — typically thirty days by either party — and the grounds for immediate termination (material breach, insolvency, loss of NSA licence). Termination procedures under the Contract Act 1872 must comply with the notice provisions in the agreement.
Forms-legal.com provides this Security Services Contract (Pakistan) template as a practical document for licensed security companies and their clients under the Contract Act 1872 and the Private Security Companies (Regulation) Act 2020. Both parties should obtain legal advice from a qualified advocate enrolled with the relevant provincial Bar Council — Lahore Bar Council, Sindh Bar Council, KPK Bar Council, or Balochistan Bar Council — before signing high-value or long-term security services contracts.
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note = {Free legal document template}
}Frequently Asked Questions
Yes. Under Section 4 of the Private Security Companies (Regulation) Act 2020 (Federal Act No. XXIX of 2020), no person or entity may establish, conduct, or advertise a private security company in Pakistan without a valid licence from the National Security Authority (NSA). The NSA, operating under the Ministry of Interior, is the federal licensing authority for private security companies. In addition to the federal NSA licence, security companies must comply with provincial licensing requirements — in Punjab under the Punjab Private Security Companies (Regulation) Act 2013, in Sindh under the Sindh Private Security Agencies Act 2013, in KPK under the KPK Private Security Companies Regulation Act 2015, and in Balochistan under the equivalent provincial legislation. Operating without a valid licence is a criminal offence under the Private Security Companies (Regulation) Act 2020, with penalties including fines and imprisonment. Clients engaging security companies should verify the NSA licence number on the NSA's public register before signing a security services contract — engaging an unlicensed company can expose the client to regulatory and reputational risk.
Under Pakistani law, security guards deployed under a Security Services Contract are employees of the security company — not the client — for the purposes of employment law, EOBI contributions under the Employees' Old-Age Benefits Act 1976, and workmen's compensation under the Workmen's Compensation Act 1923. The security company is therefore primarily liable for the acts and omissions of its guards committed in the course of their employment under the principle of vicarious liability established by Pakistani courts. However, the client may bear liability in specific circumstances: where the client directed the guard to carry out a particular act that caused the loss; where the client provided defective equipment to the guard; or where the client's failure to provide a safe working environment contributed to the incident. The Security Services Contract should clearly allocate liability between the parties — typically through a mutual indemnity clause — and should specify minimum public liability insurance requirements. Courts in Lahore, Karachi, and Islamabad apply Section 23 of the Contract Act 1872 to strike down exclusion clauses that seek to exempt the security company from liability for the wilful misconduct or criminal acts of its guards.
Security guards in Pakistan are entitled to at least the provincial minimum wage prescribed by the relevant provincial Minimum Wages Board under the Minimum Wages Ordinance 1961. As of 2025, the minimum wage in Punjab is PKR 37,000 per month, in Sindh PKR 37,000 per month, and in KPK and Balochistan at the rates prescribed by their respective Minimum Wages Boards — these rates are periodically revised. Security companies are required to pay guards in compliance with these minimum wage rates regardless of what the client pays the security company under the Security Services Contract. In addition to the minimum wage, security companies must pay guards the mandatory EOBI contribution (5% of minimum wage by employer, 1% by employee) under the Employees' Old-Age Benefits Act 1976, and social security contributions under the West Pakistan Employees' Social Security Ordinance 1965. Security companies that pay guards below the minimum wage face penalties under the Minimum Wages Ordinance 1961 and the Shops and Establishments Act of the relevant province. Clients should include a representation and warranty clause in the Security Services Contract requiring the security company to confirm compliance with minimum wage laws.
Payments for security services in Pakistan are subject to withholding tax under the Income Tax Ordinance 2001. Under Section 153(1)(b) of the Income Tax Ordinance 2001, payments for services — including security services — made by a prescribed person (a company, AOP, or individual whose last year's tax paid exceeds PKR 100,000) to a resident person are subject to withholding tax at the applicable rate. The current withholding rate for service payments to companies is 8% (for companies appearing on the Active Taxpayers List maintained by FBR) or 12% (for companies not appearing on the Active Taxpayers List). In addition to income tax withholding, the client must check whether the security company is registered for Sales Tax (GST) under the Sales Tax Act 1990 — if so, 18% federal GST (or the applicable provincial SST rate) must be charged on the invoice and the client must ensure the input tax is properly documented on a tax invoice for claiming input credit. Security companies should ensure their GST registration is current and provide valid tax invoices to clients for compliance with the FBR's IRIS system.
Yes, but with strict regulatory requirements. Armed security guards deployed under a Security Services Contract in Pakistan must individually hold valid firearms licences under the Arms Act 1878 and the relevant provincial arms licensing regulations. In most provinces, security guards carry arms licences issued by the District Magistrate of the district where they are deployed. The security company must maintain a register of all firearms in the custody of its guards, as required by the NSA and provincial licensing authorities. The Security Services Contract must specify: whether armed guarding is included in the scope; which party is responsible for obtaining and maintaining the arms licences (typically the security company); the types of firearms authorised; the storage and handling protocols for firearms on the client's premises; and the liability allocation for incidents involving the use of firearms. The use of force by security guards in Pakistan is governed by the right of private defence under Section 96 to 106 of the Pakistan Penal Code 1860 — guards may only use force proportionate to the threat faced, and excessive use of force can result in criminal prosecution of both the guard and the security company.
The notice period for terminating a Security Services Contract in Pakistan is determined by the terms of the contract — there is no statutory minimum notice period specifically prescribed for security services contracts under the Contract Act 1872 or the Private Security Companies (Regulation) Act 2020. In practice, security services contracts in Pakistan typically specify a notice period of thirty days for termination by either party for convenience — this allows the security company time to redeploy its guards and the client time to engage a replacement provider. For termination for cause — such as loss of the security company's NSA licence, material breach of the SLA, or criminal conduct by deployed guards — the contract should provide for immediate termination (with written notice) without the standard notice period. Where no notice period is specified, the courts apply a reasonable period concept under the Contract Act 1872 — typically the length of the billing cycle (monthly) for short-term contracts or thirty days for annual contracts. Clients should ensure the security contract specifies the process for return of access credentials, keys, and equipment on termination, and the treatment of any advance payments or security deposits.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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