Sarfaraz was also removed as Test skipper and was replaced by Azhar Ali.
Pakistan will play three Twenty20 internationals in Sydney (November 3), Canberra (November 5) and Perth (November 8). The two Tests will be in Brisbane (November 21-25) and Adelaide (November 29-December 03).
Azam, who will be country’s youngest skipper in Twenty20 cricket at 25, said Australia will pose a huge challenge.
“Every tour is tough and Australia is always a challenging place because of the extra bounce, but we will go for wins as we always do,” he said a day before the team’s departure.
Azam, the number one batsman in Twenty20 rankings, said he feels honoured to have the chance to lead his country, 12 years after he entered a stadium as a ball picker.
“I am proud that now I am the skipper,” he said.
The Sri Lanka debacle, in which he managed scores of 13, three and 27, did not appear to have dented his confidence.
“Don’t judge me on just three matches,” he said.
“I have toured Australia as skipper of Pakistan Under-19 (2012) and with the Pakistan team three years ago, so I have experience of those conditions.” Pakistan will also be without senior stalwarts Shoaib Malik and Mohammad Hafeez, who were not selected for the tour.