However, despite the defeat, the Aussies have still qualified for the semi-final stage of the competition. Meanwhile, Pakistan will have to wait for the conclusion of India vs. South Africa later today to learn their fate.
Australia's reply to Pakistan's knock of 149 runs began slowly when captain Shane Watson and fellow opener David Warner were both dismissed for eight runs apiece by Raza Hasan and Mohammad Hafeez respectively.
Those dismissals saw Mike Hussey arrive at the crease and the veteran batsman went about providing some resistance to Pakistan's bowling attack.
The 37-year-old remained unbeaten throughout on his way to making 54 runs. As a result, he also helped Australia go past 112 runs, which meant that their net run rate could not be bettered by the other teams in the group.
Pakistan will also qualify for the final four if South Africa, who have been eliminated, beat India in the later encounter.
Victory for India will see the battle go down to net run rate.