Security has always been the most dominant factor in all domains of everyday life. Companies are spending more and more in this domain as security have become an international issue especially after war on terror era. Not only national departments have become victim of it but general public has also suffered a huge deal due to the lack of security measures in the recent past. This is one of the main reasonfor investment in this domain. From traffic monitoring and security purposes, a vehicle number plate recognition system can play a very useful role in monitoring the vehicle’s movement and consequently providing information about the vehicle. Different countries have their own system of issuing number plates. Similarly different algorithms are designed for number plate recognition in different countries. The proposed system constitutes an algorithm which is designed for the vehicles residing in Pakistan. Digital image processing techniques are the basis of the proposed system including the image enhancement and filtering techniques for noise and other weather effects reduction. Hough transform is used to segment the characters and consequently recognize the character. A very large data set has been used to test the system which shows quite immaculate results.