Asif, 26, was suspended after testing positive for the steroid nandrolone while playing in the Indian Premier League last year.
But his ban ends on 22 September, the day the tournament gets under way.
"He has served his time for the mistakes he made," chief selector Iqbal Qasim commented.
"We feel he can be a big asset for the team in such a big tournament."
He added: "Obviously, when you are selecting a team for any tournament you always keep in mind the profile of the tournament, venue, weather, behaviour of the pitches and bounce. All these factors were considered before final selection."
Pakistan are in Group A along with Australia, India and West Indies.
And they are hoping to add the Champions Trophy to the World Twenty20 title they won in England earlier this year.Asif's personal goal will be to make to make some headlines on the field after having his career disrupted by a series of drug-related controversies
In 2006, he was suspended for a year by the Pakistan Cricket Board after testing positive for nandrolone, but insisted he had not taken the drug deliberately and won an appeal against the verdict.
Last year, however, apart from the IPL case, he was fined one million rupees (£7,500) after being found in possession of opium at Dubai Airport.
He claimed he did not realise there was opium in a herbal remedy he was carrying but accepted he had made a mistake when he appeared at a PCB disciplinary hearing.
The Pakistan squad also includes Rana Naved-ul Hasan, who was preferred to Abdul Razzaq, and 19-year-old batsman Umar Akmal.
Umar, the brother of wicketkeeper Kamran recently made a maiden international century in Sri Lanka.
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