The edition was sponsored by Karachi Port Trust, therefore, it was also known as the 2012 KPT Challenge Cup.
Khan Research Laboratories were the defending champions, having won their third title the previous year after defeating National Bank 1–0 in the finals.
Khan Research Laboratories successfully defended their title when they defeated Karachi Electric Supply Corporation 3–1 on penalties after the game had remained goalless at the conclusion of extra-time.
The match was abandoned, when Pakistan Police players slapped the referee for awarding penalty to Khan Research Laboratories on 16th minute.
Pakistan Football Federation awarded forfeit to Khan Research Laboratories and suspended and fined 6 Pakistan Police players with Rs.