The star pace bowler twisted his left ankle while playing football during a team training sessions in Tauranga on Saturday and will not be risked in the series decider.
As revealed by the Pakistan Cricket Board on Instagram, medical staff managed and observed the injury for 24 hours before deciding he would not be cleared fit to play.
"On assessment, he showed signs of swelling and tenderness across the lateral ankle ligaments" said team physiotherapist Vib Singh.
"Once the swelling reduces it will give us a better indication as to the extent of the injury. For now we will immobilise the ankle and manage it conservatively to prevent it from further being exacerbated."
The third and final T20I between Pakistan and New Zealand gets underway at 7:00pm local time from Bay Oval, Tauranga.