Ferguson is no longer contracted to New Zealand Cricket and missed the home series against Sri Lanka while playing in Australia's Big Bash League.
Sears was a traveling reserve for last year's Twenty20 World Cup but missed New Zealand's Test series in India in November and the first half of the domestic season with a knee injury. He returned from injury on Thursday in a T20 match for Wellington province.
Sears, Will O'Rourke and Nathan Smith have been named to play at their first ICC tournament but Jacob Duffy, who was outstanding in the T20 and one-day international series against Sri Lanka, has been named as a traveling reserve.
The pace attack is led by the experienced Matt Henry and Ferguson, who has played in two T20 and two ODI World Cups.
The experience of the squad is also bolstered by captain Mitchell Santner, wicketkeeper-batter Tom Latham and former captain Kane Williamson, who played in the last Champions Trophy in 2017. Williamson also played in the 2013 edition.
Santner will be leading New Zealand to a major tournament for the first time. He offers a spin bowling option along with Michael Bracewell, Glenn Phillips and Rachin Ravindra.
The batting lineup is a strong one with Devon Conway, Will Young, Ravindra, Mark Chapman, Daryl Mitchell and Williamson providing depth and experience.
"Although the Champions Trophy hasn't been played for a few years, the team is well aware of the history of the tournament and the fact New Zealand were the first winners of the tournament in 2000 when it was known as the ICC KnockOut Trophy," coach Gary Stead said.
"We're currently blessed with a lot of quality players and that certainly made for some challenging selection discussions. Ultimately, we've gone with the squad that will offer us the best options to perform well in the expected conditions in Pakistan and the UAE."
New Zealand will prepare for the tournament with a warmup tri-series against Pakistan and South Africa in Karachi and Lahore and a warmup match against Afghanistan in Karachi.
The Champions Trophy is contested by the top-eight ranked men's ODI teams in world cricket.