The event would now be held from September 25 to October 2 at the National Stadium in Karachi, the release stated.
The incident is believed to have cost Butt his extension as only the chief patron has the powers to appoint the head of the PCB. Butt's tenure as the chairman of the board is scheduled to expire next month.
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"Butt has the desire to continue as Chairman for another year or so but he will now have to use all his connections in the government and close to Zardari to get his desired extension after the incident in the meeting," the source added.
The PCB has been resisting the option of shifting the event to Karachi despite repeated demands from the city's cricket association and former players to relocate the championship in view of the dengue outbreak in Lahore, which has created uncertainty in the minds of the participants.
The dengue fever has so far claimed around 41 lives in Lahore with five deaths reported yesterday.
The board had earlier confirmed that 13 teams from across the country apart from Afghanistan will be participating in the country's premier domestic competition.
