Australia won the toss and chose to bat first in the game. They scored 193/4 in their 20 overs.
Skipper Steve Smith led from the front as he made an unbeaten 61 runs from 43 balls which included seven boundaries.
Shane Watson also remained not out after scoring 44 runs from 21 balls with the help of four boundaries and three sixes.
Glenn Maxwell scored 30 runs while opener Usman Khawaja contributed 21 runs as well.
Imad Wasim and Wahab Riaz grabbed two wickets each.
Pakistan, chasing 194 runs to win, could only put up 172 runs on the loss of eight wickets in their given 20 overs.
Khalid Latif was the highest scorer for the green shirts as he made 46 runs from 41 deliveries after hitting four boundaries and a six while Shoaib Malik remained not out at 40 runs from 20 balls with two boundaries and two sixes to his name.
Opener Sharjeel Khan scored 30 runs from 19 balls after striking six fours.
James Faulkner was the pick of the bowlers as he took five wickets in his four overs after giving 27 runs.
Adam Zampa grabbed two wickets while Josh Hazlewood dismissed one Pakistani batsman.
Pakistan XI: Ahmed Shehzad, Sharjeel Khan, Khalid Latif, Umar Akmal, Shoaib Malik, Sarfraz Ahmed, Shahid Afridi (captain), Imad Wasim, Mohammad Amir, Wahab Riaz and Mohammad Sami.
Australia XI: Usman Khawaja, Aaron Finch, David Warner, Steve Smith (captain), Shane Watson, Glenn Maxwell, James Faulkner, Peter Nevill, Adam Zampa, Nathan Coulter-Nile and Josh Hazlewood.
Over 20: Pakistan 172/8 (match over)
Australia beat Pakistan by 21 runs and eliminate Pakistan from the 2016 World Twenty20.
WICKET: Wahab Riaz c Hazlewood b Faulkner 0 (1b 0x4 0x6). Pakistan 164/8 in 19.2 overs. Next batsman: Mohammad Sami.
WICKET: Sarfraz Ahmed c Khawaja b Faulkner 2 (3b 0x4 0x6). Pakistan 164/7 in 19.1 overs. Next batsman: Wahab Riaz.
Over 19: Pakistan 164/6 (require 30 runs to win)
Shoaib Malik scored the boundary and six in the over bowled by Coulter-Nile.
Over 18: Pakistan 150/6 (require 44 runs to win)
Faulkner got the wickets of Khalid Latif and Imad Wasim in the over.
WICKET: Imad Wasim c Coulter-Nile b Faulkner 0 (1b 4×4 1×6). Pakistan 147/6 in 17.4 overs. Next batsman: Sarfraz Ahmed.
WICKET: Khalid Latif b Faulkner 46 (41b 4×4 1×6). Pakistan 147/5 in 17.3 overs. Next batsman: Imad Wasim.
Over 17: Pakistan 145/4 (require 49 runs to win)
Ten runs taken from Shane Watson’s over as Shoaib Malik hit the four runs.
Over 16: Pakistan 135/4 (require 59 runs to win)
Shoaib Malik hit Zampa for a maximum.
Over 15: Pakistan 125/4 (require 69 runs to win)
Hazlewood went for 11 runs in the over as Khalid Latif hit the boundary.
Over 14: Pakistan 114/4 (require 80 runs to win)
Zampa got Afridi stumped out after being struck for a six.
WICKET: Shahid Afridi st Nevill b Zampa 14 (7b 0x4 2×6). Pakistan 110/4 in 13.2 overs. Next batsman: Shoaib Malik.
Over 13: Pakistan 104/3 (require 90 runs to win)
Khalid Latif and Shahid Afridi struck a boundary each from Coulter-Nile’s over.
Over 12: Pakistan 94/3 (require 100 runs to win)
Shahid Afridi hit the maximum off Maxwell.
Over 11: Pakistan 87/3 (require 107 runs to win)
Zampa got the wicket of Umar Akmal after being hit for a boundary.
WICKET: Umar Akmal b Zampa 32 (20b 3×4 1×6). Pakistan 85/3 in 10.3 overs. Next batsman: Shahid Afridi.
Over 10: Pakistan 79/2 (require 115 runs to win)
Glenn Maxwell gave six singles in the over.
Over 9: Pakistan 73/2 (require 121 runs to win)
Khalid Latif hit Faulkner for a maximum on mid-wicket.
Over 8: Pakistan 62/2 (require 132 runs to win)
Adam Zampa gave four runs in his first over.
Over 7: Pakistan 58/2 (require 136 runs to win)
Umar Akmal scored 17 runs from Shane Watson’s first over by hitting two boundaries and a six.
Over 6: Pakistan 41/2 (require 153 runs to win)
James Faulkner got the wicket of Sharjeel Khan after being hit for a boundary on the first ball.
WICKET: Sharjeel Khan b Faulkner 30 (19b 6×4 0x6). Pakistan 40/2 in 5.3 overs. Next batsman: Umar Akmal.
Over 5: Pakistan 36/1 (require 158 runs to win)
Hazlewood went for six runs in the over as Khalid Latif hit him for four.
Over 4: Pakistan 30/1 (require 164 runs to win)
Coulter-Nile conceded nine runs in the over as Sharjeel Khan scored the boundary.
Over 3: Pakistan 21/1 (require 173 runs to win)
Hazlewood dismissed Ahmed Shehzad in the over before being hit for a four by Sharjeel Khan.
WICKET: Ahmed Shehzad c Coulter-Nile b Hazlewood 1 (6b 0x4 0x6). Pakistan 20/1 in 2.5 overs. Next batsman: Khalid Latif.
Over 2: Pakistan 14/0 (require 180 runs to win)
Sharjeel Khan hit Nathan Coulter-Nile for three boundaries in the over.
Over 1: Pakistan 2/0 (require 192 runs to win)
Josh Hazlewood bowled the first over and went for just two runs.
Opening batsmen: Sharjeel Khan and Ahmed Shehzad.
Over 20: Australia 193/4
Pakistan require daunting 194 runs to win this match against Australia.
Over 19: Australia 179/4
Smith and Watson scored a boundary each in Wahab Riaz’s over.
Over 18: Australia 167/4
Sami gave 15 runs in the over as Watson and Smith hit a six and boundary respectively.
Over 17: Australia 152/4
Mohammad Amir conceded 17 runs in the over as a mis-field resulted in a four on the third ball and Watson dispatched the fifth and sixth delivery for a six and a boundary.
Over 16: Australia 135/4
Shane Watson hooked Wahab Riaz for a boundary.
Over 15: Australia 127/4
Three singles taken from Shahid Afridi’s fourth over.
Over 14: Australia 124/4
Imad Wasim gave 12 runs in the over as Steve Smith struck the two fours. Maxwell was caught out in the over.
WICKET: Glenn Maxwell c Ahmed Shehzad b Imad Wasim 30 (18b 3×4 1×6). Australia 119/4 in 13.4 overs. Next batsman: Shane Watson.
Over 13: Australia 112/3
Smith hit the four on the first ball while Maxwell struck the boundary and the maximum in Sami’s over.
Over 12: Australia 95/3
Imad Wasim gave five singles in the over.
Over 11: Australia 90/3
Afridi went for 13 runs as Maxwell struck the two boundaries off the leg spinner.
Over 10: Australia 77/3
Imad Wasim gave seven runs in the over.
Over 9: Australia 70/3
Six runs taken from Shahid Afridi’s over.
Over 8: Australia 64/3
Imad Wasim bowled Finch before being hit for a boundary by Steve Smith.
WICKET: Aaron Finch b Imad Wasim 15 (16b 1×4 0x6). Australia 57/3 in 7.2 overs. Next batsman: Glenn Maxwell.
Over 7: Australia 57/2
Shahid Afridi gave five singles in his first over.
Over 6: Australia 52/2
Wahab bowled Warner and gave 10 runs in the over.
WICKET: David Warner b Wahab Riaz 9 (6b 2×4 0x6). Australia 42/2 in 5.1 overs. Next batsman: Steve Smith.
Over 5: Australia 42/1
Finch and Warner each struck a boundary in Sami’s over.
Over 4: Australia 32/1
Usman Khawaja pulled Wahab Riaz for the first maximum of Australian innings before getting clean bowled. David Warner struck his first four of the match.
WICKET: Usman Khawaja b Wahab Riaz 21 (16b 3×4 1×6). Australia 28/1 in 3.4 overs. Next batsman: David Warner.
Over 3: Australia 21/0
Five runs taken from Mohammad Amir’s second over.
Over 2: Australia 16/0
Mohammad Sami went for 11 runs in his first over as Khawaja struck the two boundaries.
Over 1: Australia 5/0
A thick edge from Usman Khawaja’s bat went all the way to the cover boundary on the bowling of Mohammad Amir.
Opening batsmen: Usman Khawaja and Aaron Finch.