The special court formed to try former military ruler handed down the sentence on Tuesday after analysing complaints, records, arguments and facts in the case for three months. Musharraf was found guilty under Article 6 of the Constitution of Pakistan.
It was a majority verdict, with two of the three judges making judgements against Musharraf.
The former Pakistani leader has been living in self-imposed exile in Dubai since 2016 to "seek medical treatment".
The prosecution tabled all of the evidence before a special court in September 2014. However, the trial of the former president lingered on due to delayed litigation at the appellate level.