According to a report in "Dawn" newspaper, the PCB didn't want to annoy the ECB which was upset with the decision to appoint Rashid as chief selector in the first place in March.
The report says that the ECB chief Giles Clarke had conveyed his annoyance to the PCB because Rashid had been supporting banned test leg-spinner, Danish Kaneria in the spot fixing case since last year.
The disciplinary committee of the ECB had banned Kaneria in 2012 for life from playing in the UK after finding him guilty of coaxing and encouraging his teammates at Essex county to spot fix in a championship game way back in September 2009.
Kaneria's appeal was also rejected in 2013 by the ECB appellate tribunal and the leg-spinner who has also been ordered to pay costs of around 200,000 pounds has now entered an appeal against his ban and the costs in a commercial court in London which is expected to give a verdict this week.
The report said that PCB Chairman, Najam Sethi had tried to raise the issue of Kaneria at a recent ICC meeting where Giles Clarke strongly protested the move and even threatened to boycott the meeting.
"PCB came under pressure because of the ECB stance and decided to give a cold shoulder treatment to Rashid after announcing his appoint as chief selector, a post he was to take charge of from April 1st. They knew well that given his temperament, Rashid would react to the cold shoulder treatment which he did and refused to accept the contract sent by the board," the report said.