He is the 30th chairman of the board.
The election took place at the Board of Governors meeting at the National Cricket Academy in Lahore.
According to reports, Sethi was elected unopposed.
He will replace Shaharyar Khan.
"I am sure his experience and guidance will bring cricket in Pakistan to higher levels and will end Pakistan's isolation in international cricket," outgoing chairman Shaharyar Khan was quoted as saying by Dawn News, congratulating Sethi on his election.
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