England, who were 128 for two, lost their last eight wickets for just 83 runs at the Sophia Gardens.
Injured England bowler Chris Woakes on Test Match Special: "Pakistan opted to bowl first, which we all thought was the wrong decision as we thought the pitch would deteriorate and become harder to score on". "I think this (his emergence) is something marvelous for Pakistan cricket".
Playing on the pitch which Pakistan had beaten Sri Lanka on only two days earlier, England failed to adjust to the slow, low surface and posted a meagre total of 211 all out.
Morgan did not absolve his team of blame, adding: "We left ourselves short adapting to conditions".
Pakistan will face the victor of tomorrow's/Thursday's semi-final between India and Bangladesh, meaning we are guaranteed an all-Asian final. "I think it will have to evolve in whatever manner the game does over the next two years in the lead-in to the World Cup, but certainly, I think we're moving in the right direction", Morgan added.
Big-hitting Stokes was in a restrained mood, failing to hit a single boundary and scoring 11 singles at the start.
Pakistan lost the ODI series in England 4-1 previous year, but did register a consolation victory in the final match at Sophia Gardens, leaving Sarfraz positive ahead of their mid-week clash.More news: Not much new in Trump's Cuba policy
Having swept aside all opposition in the group stage, the hosts were expected to continue their good run when they faced a strong pace attack from Pakistan in the first semi-final of the Champions Trophy 2017. Hasan Ali's three for 35 from 10 overs shone brightest, earning him the man of the match award and taking him to 10 wickets for the tournament and the top of the bowling charts.
"The seamers for Pakistan bowled superbly, you couldn't really argue that".
"Credit goes to the bowlers", Sarfraz said.
Defeat extended England's long wait for a maiden major one-day worldwide title until at least 2019 - when they stage the next World Cup.
While England eased to the semis through some wonderful all-round displays, Pakistan had to recover from an opening-game hammering by India and only scraped into the last four with a thrilling defeat of Sri Lanka on Monday. We played against some really good sides recently, and we've managed to beat them, but that hasn't gone to our heads at all.
"No one recognised us.
We've got a long way to go until we reach the level we want to get to and a level I believe we're good enough to get to".