The court has also ordered the Election Commission of Pakistan to issue a notification of Asif's disqualification as member of the parliament.
A three-member bench headed by Justice Athar Minallah announced the verdict and ruled that Asif is not "honest" and "truthful" as per the Constitution.
After the verdict, joyous Dar dedicated his victory to the people of Sialkot and PTI Chairman Imran Khan.
Earlier, PTI MPAs also celebrated the disqualification of Khawaja Asif outside the Punjab Assembly and distributed candies among each other.
Talking to a private news channel on Thursday, he said that he reserves the right to challenge verdict of the IHC.
"We declare that the respondent was not qualified to contest the General Election of 2013", read the court's ruling, referring to the country's last nationwide polls. "I never concealed my iqama", he said.More news: Bob Dorough (1923 - 2018), "Schoolhouse Rock" musician
He said that he would be happy if his son is interested in politics and he contests elections on his behalf.
Usman Dar had petitioned the court that Asif was not entitled to hold the office since he had an Unlimited Term Employment Contract with IMECO, Abu Dhabi. It was not clear if he would have to relinquish control of the foreign ministry, since he could remain in charge as an adviser to the prime minister.
In a series of tweets, Maryam Nawaz Sharif took a jab at the petitioner in the case-Pakistan Tehreek-e-Insaf (PTI) leader Usman Dar- by saying that he (Dar) got Asif disqualified from court when he could not beat him in elections.
"The validity of "Iqama", working as an employee of the Company and receiving a substantial salary without being physically present, which is AED 50,000/- per month under the Third Contract executed in July 2017, were some benefits gained from non-disclosure".
It merits to note here that the employment permits of two federal ministers - Khawaja Asif and Ahsan Iqbal - were surfaced after the Panama joint investigation team (JIT) unearthed ex-PM Nawaz Sharif's UAE-based Iqama (work permit).