"azharnasir" - Hey there... I've found one of the best ways to transfer contacts from outlook to your new mac is by using Plaxo for mac (I feel like I should be selling plaxo, as I have it posted about it a few times now..: ). Check it out
HERE
I used to have all of my contacts on a pc at my old job then struggled for a month or two trying to figure out how to get them into my mac without any problems... I signed up for Plaxo online (free btw) which uploads all your contact & calendar info into your online account. Then I just imported them all on my mac.
They have since come out with "Plaxo For Mac" which makes it even easier. No MS gibberish or frustration required!

Let me know if this works for you...