Shah made his international debut in the Brisbane Test against Australia last month where he scalped the wicket of David Warner with a brute of a short ball when the Australian opener was batting on 154.
He also became the youngest cricketer in the world to make Test debut on the Aussie soil.
Wicketkeeper-batsman Rohail Nazir will be leading Pakistan in the tournament, while prolific opener Haider Ali has been appointed as his deputy. The 2004 and 2006 champions and three-time runners-up, Pakistan are placed in Group C of the 16-team event and will play Scotland in their opening match on January 19.
Pakistan's second match will be against Zimbabwe at the Witrand Oval on January 22, while their third and final group match will be on January 24 against Bangladesh.
The top two teams from each of the four groups will advance to the Super League, while the remaining teams will feature in the Plate Championship. The Super League stage will commence from January 28 and the top four sides will qualify for the semi-finals, with the winners competing for the title on February 9 in Benoni.
The Pakistan cricket team can make changes to their combination until January 10 without needing an ICC approval. After 11 January, players can be replaced on fitness grounds and will require the approval of the ICC's Event Technical Committee.
Pakistan squad:
Rohail Nazir (c, wk), Wahid Bangalzai, Haider Ali, Mohammad Shahzad, Mohammad Harris, Mohammad Huraira, Mohammad Irfan Khan, Abbas Afridi, Fahar Munir, Qasim Akram, Amir Ali, Arish Ali Khan, Amir Khan, Naseem Shah, Tahir Hussain