The Black Caps posted 153-7 from their 20 overs, before the hosts Pakistan managed to haul in the total with two balls to spare and six wickets in hand.
The victory seals the series 2-0 for Pakistan with the final game to be played at the same ground on Monday morning.
With two ball remaining a boundary with two balls remaining from Mohammad Hafeez secured an 11th straight Twenty20 series victory for Pakistan, successfully chasing 154 to claim a six-wicket win and seal the series 2-0.
The margin of defeat was slightly flattering for the Black Caps, with Pakistan largely in control, despite a few wobbles, and deserving of continuing a strong run at home.
The Black Caps can be proud to have come have come closer than anyone in recent times who had every chance of victory, only to have the game slip away from them at crucial periods.
In the first innings, Colin Munroe had an explosive start giving the visitors a stunning start after they won the toss and chose to bat first.
Munro had the Black Caps sitting pretty at 47-0 after five overs, but it soon stalled after his departure for 44 off 28 balls, unable to make boundary after seven overs.
Kane Williamson (37 off 34) wasn't getting any support, as Glenn Phillips, Colin De Grandhomme and Ross Taylor all went prematurely restricted the momentum they once had.
Thank the Pakistan slower bowlers didn't have the same success with Corey Anderson though who came alive at the crease.
Striking the ball through the leg side, Anderson hit an unbeaten 44 from 25 balls, getting his side on the right side of 150.
However, Pakistan were on a run of 10 straight successful T20 run-chases, and they made it 11 with a superbly balanced effort. Fakhar Zaman (24 off 15) got them off to a rapid start which was only ended by a stunning one-handed catch from Williamson, but Babar Azam (40 off 41) and Asif Ali (38 off 34) put on a clinic in strike rotation; accumulating more singles than Tinder as Pakistan reached 96-1.
The Black Caps bowling kept the run rate challenging and they were in with a chance when Pakistan needed 40 from the last four overs. But with wickets in hand, Hafeez delivered.
Two sixes off Ish Sodhi put the hosts in the box seat, and although a Black Caps glimmer remained when the equation read six from four balls, Hafeez made sure a boundary got Pakistan home.