Under new Premier Jacinta Allan, the Victorian cabinet ticked off Mr Pakula's board appointment on Monday after he was publicly linked to the vacant role.
Paul Little, former president of AFL club Essendon, stepped down as the board's chair last month.
Mr Pakula retired from politics at last year's state election after his seat of Keysborough was abolished as part of an electoral boundaries redistribution.
He was first elected as a member of the upper house for the Western Metropolitan region in 2006, before moving to the lower house as the member for Lyndhurst in a 2013 by-election.
In his 16 years as a Victorian MP, he served as attorney-general as well as minister for major events, trade, tourism, racing and sport.
Mr Pakula played a role in Melbourne locking in hosting rights for the Australian Grand Prix until 2037.
"Mr. Pakula's experience will help ensure that the Formula 1 Australian Grand Prix remains one of the great events anywhere in the world," a Victorian government spokeswoman said.
He also led Victoria's bid for the 2026 Commonwealth Games and fronted a Senate inquiry over its cancellation in August.
His appointment comes after fellow ex-Labor ministers James Merlino, Martin Foley and Lisa Neville were elevated to publicly funded board roles this year.
Mr Merlino was picked to head up the authority overseeing Labor's signature Suburban Rail Loop, Mr Foley has taken over as chair of the Melbourne Arts Precinct Corporation and Alfred Health, and Ms Neville is leading Barwon Health as its chair.
All of the positions are taxpayer-funded.
Opposition tourism, sport and events spokesman Sam Groth said more than 30 former Labor MPs and ministers have been appointed to sit on taxpayer-funded boards since the party reclaimed government in 2014.
"Once again there appears to have been no process around yet another appointment of a former Labor minister to a public position," he said.
"Time and again, Labor hand-picks former MPs and friends for plum taxpayer-funded public board positions and new Premier Jacinta Allan is no different."