Though Hair's contract as a top official is till 2008, he is now only allowed to officiate for matches between non-Test nations and he believes he is being wrongfully targetted following the ball-tampering row during the forfeited Oval Test last summer between England and Pakistan.
However Billy Doctrove, who was also involved in the same match, has already returned to his umpiring duties.
PCB chairman Dr Nasim Ashraf claimed he was aghast when told of what Hair intended to do by his lawayer.
"This is adding insult to injury. Race has nothing to do with this," Ashraf told BBC Radio 4's Today programme.
"Mr Hair was removed from the elite panel of umpires by the full ICC board, which has many countries, because of his poor judgement.
"This is the most preposterous thing I have heard. This is another manifestation of Mr Hair's mental status."
Hair believes the PCB was involved in inducing the ICC in action which could be described as discrimination when the Pakistan cricketing authorities urged for his suspension in the run-up to a meeting in November.
Officials at the ICC however had already stated, prior to that November meeting, they were hopeful Hair would be back in action on their elite umpire panel.