The PCB said that Ghauri, who officiated in five tests, 43 one-day internationals and four Twenty20s, will not be considered for any appointment during the length of his ban.
Domestic umpire Anis Siddique was banned for three years after the integrity committee felt he initially resisted the offers during the same sting operation "but finally conceded to them on their persistence."
The PCB formed an inquiry committee soon after the sting operation alleged Pakistani umpires were engaged in corruption last October. The committee also received unedited video footage from the Indian TV station and information from the International Cricket Council.
Both umpires submitted statements and were cross-examined by the committee, which included PCB official and former captain and coach Intikhab Alam.
"Both umpires failed to exercise caution and sound judgment, which resulted in their entrapment in the said sting operation," the PCB statement said. "The submissions made by both umpires failed to corroborate/correlate with the contents of the authenticated video footage."
The committee's recommendations were given to PCB's integrity committee, which met on Saturday under board chairman Zaka Ashraf.
The integrity committee members said "they were of the unanimous view that substantial incriminating material was available on record suggestive of the fact that both the umpires were willing to compromise their integrity in discharge of their professional duties."
Ashraf said the PCB has a zero-tolerance policy for corruption or indiscipline.
"We are committed on creating awareness amongst our players and officials with regards to the possible pitfalls, and are determined to adopt all vigilance and security parameters, which are in line with the laid out procedures of the ICC," he said. "Today's decision reiterates the commitment of the PCB to keep our great sport free of all corrupt practices."
Last month, Bangladesh's cricket board banned umpire Nadir Shah for 10 years on similar charges of corruption.
Several first class umpires from Sri Lanka, Pakistan and Bangladesh were allegedly exposed in the Indian TV sting operation, in which the reporters claimed to be from a sports management company.
Sri Lanka Cricket has yet to start investigating the matter.