At the same time it revoked all no-objection certificates (NOCs) for the player, meaning he will not be officially permitted to play abroad, the PCB said.
Afridi had been expected to play for Hampshire in the Twenty20 league in England next month, and also in the Sri Lanka Premier League a month later.
The 31-year-old, who was stripped of the Pakistan one-day captaincy earlier this month, announced his retirement from all international cricket on Monday following a spat with coach Waqar Younis.
"PCB has initiated action against Afridi in response to the multiple breaches he has committed under the central contract signed with PCB," the statement said.
The PCB said Afridi must explain within seven days why he levelled allegations against the Board.
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