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The Pakistan Cricket Board had written to the governing body complaining about a visa delay which, it said, had disrupted the team's preparation for the showpiece event.
The pacer will be replaced by 22-year-old Zaman Khan, who has yet to make his ODI debut.
The PCB wants its matches to be scheduled in Kolkata, Chennai and Bengaluru.
India have declined to tour Pakistan for September's Asia Cup and want the entire tournament be held in a neutral country, which has prompted a tit-for-tat response from the Pakistan Cricket Board.
Meanwhile, the Asian Cricket Council is all set to shift the Asia Cup to Sri Lanka.
The Johannesburg-born 54-year-old is Derbyshire head coach and will now also oversee strategy for Pakistan.
It is understood that discussions are currently on at the ICC level as the Pakistan Cricket Board bigwigs are in talks with a top level ICC executive on the issue.
Several Pakistan cricketers, including captain Babar Azam, attended the function.
Chasing 164 against New Zeland, Pakistan's middle order came good to secure victory with three balls to spare and clinch the tri-series which also included Bangladesh.
The return of India-Pakistan matches will certainly excite the expatriate community, though the old fervour is unlikely to stage an immediate comeback.
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