Players from Australia, New Zealand and England have raised concerns over security in the troubled Islamic republic despite an all-clear from the International Cricket Council (ICC).
"I think the Australians have double standards," Wasim told AFP. "They played in England despite blasts in London in 2005 and four Australians were willing to play in India despite blasts in Jaipur last month."
The ICC board in a meeting starting on June 29 in Dubai will discuss an independent security assessment on the situation in Pakistan before taking a final decision on the Champions Trophy.
Australian captain Ricky Ponting last week said his side and others still had security concerns about Pakistan, and Australia were undecided about competing in the Champions Trophy.
Australia earlier this year postponed a Test and one-day tour of Pakistan over security fears sparked in the wake of a series of blasts -- a decision Wasim believed was justified.
"I was in Australia at that time and backed their decision because the news we were getting at that time was not conducive for cricket, but nothing is happening now and they themselves rescheduled the tour after getting assurances," said Wasim, who played 104 Tests for Pakistan.
Australia set new dates for a one-day tour in 2009 and a Test tour in 2010 following an improvement in security after February's general elections in Pakistan.
Wasim accused the Australians of influencing other nations to boycott September's Champions Trophy.
"How can they create an opinion by sitting there in Australia? They said they don't want to come and (are) also trying to influence other teams. I am sorry, they are willing to play anywhere if they get money," he said.
Wasim said if Australia do not turn up, they should be fined by the ICC and action should be taken against them.
The Pakistan Cricket Board last week said it had made arrangements normally reserved for heads of state for the Trophy.
Wasim also lashed out at Tim May, the chief executive of the Federation of International Cricketers' Associations, for generating doubts over security in Pakistan.
Wasim said the Asian bloc, especially India, must support Pakistan.
"India have been supportive to Pakistan's cause, they have sent a team for the (ongoing) Asia Cup, so Asia must devise a system to help Pakistan and ensure that the Trophy is held here," he said.
"Pakistan cannot afford teams pulling out at the last minute, it will destroy Pakistan cricket."