"I have today conveyed to the members of the Board of Governors that I will step down on 18th August on completion of my term and I will not be contesting for another term as chairman or in any other capacity in the Board," the 83-year old Shaharyar said.
Shaharyar, a former career diplomat, told the media in Lahore that he had already written to the patron in chief of the PCB, Prime Minister Nawaz Sharif about his decision.
The former High Commissioner to India underwent a major heart surgery in London last year and they were rumours that he would step down.
But Shaharyar returned home and has carried on working as the head of the Cricket Board.
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"I have written to the Prime Minister that I am ready to step down, resign at any time if he wants before completion of my term," he said.
Shaharyar said if his resignation is accepted the complete constitutional procedure will be followed by the PCB to elect his successor.
Indications are that Najam Sethi, whom Shaharyar replaced as chairman in 2014 and who is now head of PCB's executive committee, might again be elected as the new chairman of the Board in August or even before that.