Naved was among seven players banned or fined by the PCB after a shambolic tour to Australia this year on the grounds of misconduct and indiscipline.
"It is a great relief to finally be cleared of this ban and now I just want to focus on cricket," Naved told reporters in Lahore after a hearing of the appellate tribunal of the board.
Naved, 32, said he was always confident he would be cleared and now aimed to make a comeback to the national team.
"These punishments were a dark chapter of my cricket career and I want to get over it and from tomorrow I will play domestic cricket and show my form," he said.
The appellate tribunal also reduced a fine of two million rupees ($23,242) to half that amount.
Talib Rizvi, legal adviser to the PCB, said appeals judge Irfan Qadir had lifted the ban as Naved had apologized for his conduct and served six months of the suspension.
"He is now free to be considered for national selection," Rizvi said. Naved has played nine tests and 74 ODIs.
Five of the seven players sanctioned after the Australia tour have since played for their country with the exceptions of Naved and former captain Younus Khan.
The appellate tribunal has removed an indefinite ban on Younis but the PCB has insisted he must first meet chairman Ijaz Butt before he can be cleared to play for Pakistan again.
A PCB source told Reuters a notice had been sent to Younus on Saturday in which he had been given one week's time to contact them and resolve the issue.
"If he doesn't contact us in a week's time with reference to his case than we will issue him a fresh showcase notice and move to reimpose the ban on him," the source said.
