The 29-year-old had initially gone unsold in both leagues before being signed by Islamabad as a replacement.
However, he later pulled out after receiving an offer from Kolkata Knight Riders, who needed a replacement following the exit of Mustafizur Rahman.
Muzarabani has already featured in two matches for Kolkata, including a 4/41 performance against Sunrisers Hyderabad.
The PSL confirmed the sanction on April 14, stressing that the move violated contractual commitments.
“Professionalism in franchise-based leagues requires participants to act with transparency and consistency… The two-year ban reflects the gravity of the breach,” the league said in a statement.
Muzarabani is not alone, with players like Spencer Johnson and Dasun Shanaka also leaving PSL deals for IPL opportunities, and they could face similar disciplinary action.
Last season, Corbin Bosch received a one-year ban for a comparable breach.
