The Australians lost both openers and at tea were 40 for two with Usman Khawaja not out 13 and Smith on eight.
David Warner looked to attack but fell for 12 when he went to hit Mohammad Amir through midwicket only to miscue his pull shot to Wahab Riaz at mid-on.
Matthew Renshaw was caught by Younis Khan at second slip off Rahat Ali for six.
Wicketkeeper Sarfraz Ahmed earlier top scored with a fighting unbeaten 59 off 64 balls as the tourists added 45 runs to their overnight total 97 for eight.
Two miniscule technology decisions went against the tourists in the first session.
Sarfraz and Amir put on a stubborn 54 runs for the ninth wicket before Amir was adjudicated caught behind off a faint edge, detected by Hot Spot.
The Australians sought a review after umpire Richard Illingworth initially gave him not out and the infra-red imaging system picked up contact on Amir's bat.
The TV umpire Sundaram Ravi told Illingworth to reverse his decision which left Amir stunned.
Amir had looked comfortable in the daylight conditions, adding 13 runs to his overnight tally in his support of Sarfraz.
Nic Maddinson got two hands to an airborne catch off Sarfraz on 51 but could not hold the chance and it ran into the boundary rope for four.
Technology again thwarted Pakistan when after repeated replays Rahat Ali was given run out by Warner for four.
Replays showed that Rahat's bat was millimetres off the ground when the bails were dislodged by Warner's throw from mid-off.
-AFPÂ
