Pakistan still require 252 runs with seven wickets in hand to beat Australia here at the MCG on the fourth day of the first Test on Tuesday.
Pakistan were 170 runs for three wickets when the play ended on the penultimate day.
Captain Mohammad Yousuf and young Umar Akmal were at the crease with 45 and 27, respectively. Both added 54 runs for the unbeaten fourth wicket partnership.
Pakistan began their second innings for chasing a huge target of 422 runs, an uphill task, to beat Australia.
However, they soon lost Imran Farhat for 12 when the score was only 18 but Faisal Iqbal together with opener Salman Butt made 62 for the second wicket before Butt departed on 33.
Then Yousuf joined Faisal to carry the score to 116 when Faisal was bowled for 48.
Earlier, Aussie captain Ricky Ponting declared when spinner Nathan Hauritz was stumped, setting Pakistan a mammoth 422 runs to win the first Test at the MCG.
Opener Sahne Watson had gone to lunch on 98 after playing out a maiden from Pakistani spinner Saeed Ajmal in the over before lunch.
Watson was dropped on 99 as he completed an emotional and incredible maiden Test century.
The Test opener spent 67 nervous minutes in the 90s and only got to a century when he slashed to backward point and was dropped by Abdur Rauf.
The drop allowed him to run down the pitch and complete his century - raising both arms in the air in the moment he has always dreamt of.
Mitchell Johnson was run out for 22, becoming just the fifth man in Test history to hit 500 Test runs and take 50 Test wickets in a calendar year.
After seven fifties from 12 innings as a Test opener (including 96, 93 and 89 this summer) Watson could take nothing for granted as he crept up on triple figures.
But years of emotional turmoil were released when he hit Australia's first Test century of a summer where batsmen have failed to convert 50s into 100s.
It came after teenage Pakistan quick Mohammad Aamer (5-70) snared his maiden Test five-wicket haul by polishing off Michael Clarke (37), Marcus North (8) and Brad Haddin (0) in the morning session.
The 19-year-old Aamer had Clarke caught behind before North played on and angrily swished his bat over the top of the stumps before walking off.
Haddin was caught behind off just his second ball at the crease.
