The decision means the he will now be available for the first Twenty20 international against New Zealand in Auckland on Friday.
The 25-year-old, playing for the Sui Northern Gas Pipelines Limited, committed a level-one offence when he sported two logos on his kit instead of the one permitted.
“The ban would have applied to the next match in which Umar was selected to participate whether domestic or international. Practically this meant the first T20 match between Pakistan and New Zealand,” the Pakistan Cricket Board (PCB) said.
“But Umar has advised PCB that he wishes to appeal against the ban. Since Umar has opted to appeal against the decision… the penalty of one match will remain suspended until the decision of appellate tribunal.”
Pakistan are on a New Zealand tour to play three Twenty20s and three one-day internationals.
Umar has a history of disciplinary problems. He was initially dropped from the squad to play England in November last year after being arrested during a dance party.
However, he was cleared by the police and was later included in the squad.
He was also arrested after brawling with a traffic warden in Lahore in February last year, but was released the next day after apologising.