Arthur, 51, took charge of a mercurial Pakistan side in 2016 following his stints with the national teams of South Africa and Australia and, according to local media reports, was keen on an extension.
The PCB Cricket Committee unanimously recommended that the contracts of bowling coach Azhar Mahmood, batting coach Grant Flower and trainer Grant Luden are not renewed either.
Arthur says of his sacking: “I am extremely disappointed and hurt.
“I did my wholehearted effort to lift Pakistan cricket.”
The PCS adds: “[We] will now advertise the four available roles and will invite high level applications from interested candidates.”