"Miandad will continue to be the coach of the national team till the expiry of his contract, that is the start of the next year," PCB chairman Shaharyar Khan said.
Pakistan's first-ever defeat to India on home soil in the One-dayers and the Tests in March-April had led to speculation that the axe would fall on the coach and skipper Inzamam-ul-Haq but the PCB, having learnt lessons from past mistakes, has decided to continue with both.
"It would not be just to judge the coach on result of just one series. Nobody can blame the coach alone for series defeat against India," he was quoted as saying in local daily The News.
The PCB chairman said the Board "does not want to set a bad precedent by removing the coach and captain every time the team loses".
"There is no need to panic and there is no need to change the coach or captain on the performance of just one series," he said.
The PCB chief also said henceforth captains would be appointed on series-to-series basis instead of a fixed term as was the case now.
The decision would mean Inzamam's stint as captain would be up for review after the Asia Cup in July in Sri Lanka.
"We announced Inzamam as captain of Pakistan team till the Asia Cup. The trend will now change to announcing the captain on a series to series basis," Shaharyar said while asserting that the coach would continue to work for fixed terms.
The decision to continue with Miandad's services follows a month-long period of uncertainty in which the former batsman-turned-coach publicly expressed his resentment.
Shaharyar had earlier confirmed the services of captain Inzamam-ul-Haq but remained non-committal about Miandad.
On the controversy over nominating young fast bowler Mohammad Sami to represent Pakistan at a function in England to unveil ICC Champions Trophy while ignoring the captain and senior players, Shaharyar said Sami was named following a request from ICC.
"In fact a request came from ICC that Sami be sent for the function and that is why he was nominated."
Shaharyar said he was surprised that speedster Shoaib Akhtar had started playing for County side Durham without taking proper rest for his injury.
"Shoaib might have his reasons...however, he has been asked to get back to the PCB in writing and narrate the reasons why he started playing for the County at a time when he was asked to take rest."