England chases down 137 with five wickets in hand winning their second T20 World Cup.
Pakistan collapsed in the final overs to finish on 137 for eight after England captain Jos Buttler sent them in to bat. All-rounder Sam Curran took 3-12.
The heavy rain predicted did not fall on the MCG as England, led by the unflappable Stokes, chased down the total with six balls to spare.
Curran was named both man of the match and tournament player.
England has become the first country to hold both global white-ball trophies, having won the 50-over World Cup on home soil in 2019.
England’s disciplined bowling
With rain forecast, England produced disciplined and economical bowling to thwart 2009 champions Pakistan, with Shan Masood scoring 38.
After England won the toss and chose to field, Stokes was given the new ball, with Pakistan lucky to survive the over after opener Rizwan was almost run out going for a risky single.
In their semi-final against New Zealand, Rizwan and Captain Babar Azam shared a century partnership, but another big stand was not to be, with Rizwan dragging a delivery from Curran on to his stumps on 15.
Rashid’s introduction soon after the six-over powerplay paid immediate dividends, with Mohammad Haris (8) attacking him on his first ball only to sky a simple catch to Stokes.
Masood started swinging the bat in the second half of the game, hitting four and six off Liam Livingstone.
But Rashid struck again, this time with a diving catch from his own bowling to claim the vital wicket of Azam, who scored 32 off 28 balls.
Ahmed lasted only six balls before Masood and Shadab Khan (20) fell in the space of two runs as Curran and Chris Jordan snuffed out Pakistan’s hopes of a late flurry.