PCB chairman Dr. Nasim Ashraf told reporters on Saturday that the new charter had been agreed upon by the Ministry of Sports after receiving prior approval from the Law Ministry.
"It will be implemented in the next 10-15 days. A governing board of 15 members would be constituted involving all the stakeholders in Pakistan cricket to oversee board affairs," he said.
Since 1999, the PCB has worked on an ad-hoc system where the chairman is directly appointed by the chief patron, a position held by the president of the country.
In those eight years, the chairman has held all the powers with no elected body within the board able to approve or manage cricket or administrative affairs.
Ashraf said the chief patron would continue to directly appoint the chairman, whose powers are curtailed in the new constitution with the formation of the governing board.
"The board which will include elected representatives of affiliated associations and departments and former Test players will carry a lot of responsibility," he added.
Former players and critics have been demanding a democratic system of governance in the PCB, insisting this was necessary to introduce more transparency to the board's affairs.
Ashraf said former players would be given a more defining role in the board.