Alam, who played 47 Tests for Pakistan -- including 17 as captain, agreed to coach the team between September 15 and March 31, 2005, Pandov said.
The 63-year-old Alam will supervise Punjab's inter-district matches, help select the Ranji team, hold coaching camps and accompany the team as manager in Ranji matches.
Pandove said the PCA has received the Board of Control for Cricket in India's (BCCI) approval to avail Alam's services and it is awaiting the Centre's clearance.
He added that legendary Pakistan all-rounder Wasim Akram had also been approached, but the PCA could not finalise the deal since "he demanded a big amount".
Pandov expressed hope that Alam would bring out the best out in the state's cricketers.