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Australia beat Waqar's side by 25 runs to knock them out of the tournament in India in the group stage on Friday.
"If we think deeply we will see that Pakistan hasn't seen any international cricket for the last seven, eight years and that has hurt us," Younis said.
"Pakistan cricket is in a bit of a decline and we need to control it."
In May 2015 Pakistan played their first home full international fixture since a terror attack in 2009, when gunmen attacked buses carrying the Sri Lanka team in Lahore.
At least six policemen escorting the team bus were killed, along with a driver. Seven cricketers and an assistant coach were injured.
Since the attack Pakistan have been playing the majority of their home matches in the United Arab Emirates, although they travelled to England for a series against Australia in 2010.
They made the semi-finals of the first four World Twenty20s, and won the competition in 2009, but have now been eliminated from the group stage in the last two.
Waqar said he would be discussing his future with the Pakistan Cricket Board soon, "to see what needs to be done".
Meanwhile, captain Shahid Afridi will make a decision on whether to retire only when he returns to Pakistan.
"Whatever is best for the country I'll go with that. When I go back I'll take a decision," said the 36-year-old, who was appointed Pakistan Twenty20 captain for a second time in 2014.
"As a player I am fine but it is hard being captain of Pakistan with the pressure and expectation."
After Steve Smith inspired Australia to 193-4 in Mohali, Afridi's side needed to pull off their highest ever chase in a T20 to have any chance of making the knockout stage.
Khalid Latif led the charge with 46 from 41 balls but James Faulkner took four of his five wickets in six late deliveries as Pakistan came up short at 172-8.
Even a win for Pakistan, who suffered a third defeat in four matches, would have seen them relying on Australia to qualify.
Had they won, a narrow Australia win against India would have sent them through instead of the Aussies by virtue of their superior run-rate.
"I think honestly speaking we were not good enough," Afridi said.
"I think we didn't play good cricket and if you look at the bowlers they've really done well but, later on, in the last four overs, we gave 40 runs so it's not good enough if you're playing against a world-class team."
Pakistan's exit from the World Twenty20 shows how badly they have been affected by having to play home games overseas, says coach Waqar Younis.