Raja, who played more than 250 international appearances for Pakistan from 1984 to 1997, replaces Ehsan mani who resigned from his post last month.
After his retirement, Raja became a cricket commentator. The 59-year-old served as CEO of PCB from 2003 to 2004.
“One of my key approaches will be to help introduce into the Pakistan men’s cricket team the same culture, mindset, attitude and approach that once made Pakistan one of the most feared cricket nations,” Raja said in a statement from the PCB.
“Obviously, as a former cricketer, my other priority will be to research the well-being of our past and present cricketers.
“The game has been and always will be about cricketers and as such they deserve more recognition and respect from their parent institution.”
Last week, PCB announced that head coach Misbah-ul-Haq and bowling coach Waqar Younis had resigned from their respective roles, shortly after their team was named for the Twenty20 World Cup.