Bajwa, a former Olympian, submitted his resignation to the Executive Board of the federation which met in Lahore to discuss the existing hockey affairs.
"The house has unanimously elected Rana Mujahid as secretary in the slot left vacant by Asif Bajwa until fresh elections are held for the term 2014-2018," a PHF release said.
The board also announced that fresh elections at club, district, provincial and national level will be held from October 25th to November 25th.
"Akhtar Rasool has also agreed to step down as head coach and manager," one source said.
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Bajwa, who until recently was adamant that he would not step down, said he had taken the decision because of the team's failure to qualify for the World Cup.
"In the end the responsibility lies with me. But I am proud that in my tenure the team achieved some notable successes," Bajwa told reporters.
"I am satisfied that we have managed to build a nucleus of players who can go on to serve Pakistan hockey for a few years now. Hockey made lot of progress in my tenure," Bajwa said.
There was no word however after today's board meeting on whether the PHF President, Qasim Zia had also offered to step down.