In Test, Azhar plays at # 3, so he doesn't compete with him and in ODI his own place is in jeopardy. Therefore, in a nutshell, he's a lot of work to do.
As for Hafeez, yes, he's good in subcontinent, but unfortunately cricket is played in other parts of the world as well, more specifically in bowling friendly conditions. His performance in those condition is not hidden from anybody.
As for his selection in national team, like as I said before, I'm quite certain he'll have some kind of connection to make it into the playing XI and to back it up will make truckload of runs in domestic.
If PCB and selectors don't want to pick him then they need to spell it out clearly. However, I was watching a TV show on GEO SUPER and Haroon Rashid said if anybody performs in domestic after completing his ban then we would consider him.
Not saying that he should be part of the team but we all know how things work in PCB.