The hosts hit a total of 211 runs and were bowled out with one ball remaining, and Pakistan responded in positive fashion, eventually reaching the target with 77 balls to spare.
Alex Hales was the first to fall for England after hitting 13 runs off as many deliveries, and Jonny Bairstow followed him back to the pavilion 11 overs later after surviving a review and a drop catch.
In reply, Azhar Ali and Fakhar Zaman stormed out of the blocks, putting on a first-wicket partnership of 118 runs, comfortably racking up the runs while England searched for a breakthrough.
On a pitch that was crying out for spinners, England were too late to answer the call as Adil Rashid nabbed his team's opening wicket 22 overs in.
Zaman walked away with a half-century after hitting 57 off 58 balls, and Ali followed later after getting bowled out by Jake Ball for 76.
It is the first time that Pakistan have reached the final of this competition.