On 19 October 2016, at the 2017 player draft, league chairman Najam Sethi announced that the final of the 2017 tournament might be played in Lahore, Pakistan, depending on the security situation there.

The final was held in Lahore on 5 March and saw Peshawar Zalmi defeating Quetta Gladiators by 58 runs to win the championship.

Sethi claimed the league had signed foreign players on the condition that if their team reached the final, they would have to travel to Lahore.

[13][14] Sharjeel Khan and Khalid Latif were both provisionally suspended under the PCB's Anti-Corruption Code as part of an ongoing investigation into an organisation's alleged attempts to corrupt the 2017 Pakistan Super League.

[21] The possibility of adding a sixth team to the league in 2017, perhaps representing Kashmir,[22][23] had been discussed but was rejected by the middle of May 2016.

[24] In February 2017, PCB chairman Najam Sethi announced that the final would be played at the Gaddafi Stadium in Lahore, while the other playoff matches were held as scheduled in Sharjah and Dubai.

[26] On 19 October 2016, at the 2017 player draft, Najam Sethi announced that the final of the 2017 tournament might be played in Lahore, Pakistan, depending on the security situation there.

[29] The official anthem of PSL season II, "Ab Khel Jamay Ga" was released on 1 January 2017.

In the group stage teams would be ranked on the following criteria:[32] If any play-off match finished with no result, a super over would be used to determine the winner.

A tied super over or rain meant the team that finished higher in the league table progressed.

Sharjeel Khan allegedly received 2 million Pakistani rupees to play two dot balls against Peshawar Zalmi.

[44] In the first game of the season, the defending champions, Islamabad United, beat Peshawar Zalmi with the use of Duckworth–Lewis–Stern method (DLS) because of rain.

[45] (DLS is a mathematical formulation designed to calculate the target score for the team batting second in a limited overs cricket match interrupted by weather or other circumstances.)

[47] In game four, the Lahore Qalandars beat the previous year's champions Islamabad United.

[53] Week 2 began on 16 February when the Lahore Qalandars took on the Karachi Kings in the second Karachi-Lahore derby of the season.

[58] In game 13, the Karachi Kings scored 174/4 in their 20 overs with the Pakistani batsman Shoaib Malik becoming the fifth highest scorer in T20 cricket.

In response an Umar Akmal 66 of 42 helped by a last over six from Grant Elliott, who then did a bat drop, gave the Lahore Qalandars a one wicket win[61] The first game of week 3 was between the Quetta Gladiators and the Karachi Kings; Quetta needed just one more win to secure a playoff spot.

[66] In the penultimate game of the league stage, an unbeaten innings of 45 from Shahid Afridi helped Peshawar beat Quetta by two wickets and finish at the top of the table.

The top four teams qualified for the playoff stage of the tournament, with the final being held on 5 March.

Karachi Kings then qualified after a victory against Islamabad United on 27 February, resulting in the elimination of Lahore Qalandars from the tournament.

Next came Anwar Ali, who made 20 as Quetta's lower middle order fluctuated before one not out from both Mohammad Nawaz and Hassan Khan to get the gladiators to exactly 200.

In response chasing 201, one of Peshawar's openers Kamran Akmal got out scoring a single run while the other Dawid Malan made 56 of 30.

Next at four was Mohammed Hafeez who anchored the innings for Zalmi scoring 77 of 47 bringing them close to the target.

The Kings' middle order continued to stumble with Ravi Bopara coming in and scoring 14 before getting out to Shadab Khan via a Shane Watson catch.

The Zalmi wicket-keeper batsman Kamran Akmal scored a century, making him the second person in PSL history to do so.

[89] The PCB and the Pakistan Super League bought buses that were bullet proof to bring players and umpires to the stadium, and a large-scale security and intelligence operation took place in Lahore.

The PCB had put in place a system to allow the teams to replace players who chose not to play in the final.

Quetta won the toss and chose to bowl in the final; Dawid Malan and Kamran Akmal opened for Zalmi.

[93] In response Quetta's top order never got going with scores of one, one and three for Morne van Wyk, Ahmed Shehzad and Anamul Haque, respectively.

Sohail Khan of Karachi Kings took 16 wickets at an average of 15.00 to be the leading wicket-taker ahead of Wahab Riaz of Peshawar Zalmi with 15.