K-P Chief Minister Ameer Haider Khan Hoti and opposition leader in the provincial assembly Akram Khan Durrani announced the decision during a joint press conference in Peshawar.
While speaking to media, Hoti said the appointment of Justice Tariq Parvez is based on merit.
Hoti expressed the hope that appointment of caretaker CM in other provinces will also made with consensus.
Durrani, who served as K-P Chief Minister from 2002-2007, urged the other provinces to name impartial caretaker CMs to ensure transparent elections in the country.
Justice Tariq Parvez will take oath as the interim CM on Sunday following the dissolution of provincial assembly on Saturday.