Pakistan took advantage of undisciplined Sri Lanka batting to dismiss them for 173 in 44.2 of their 50 overs.
Captain Waqar captured three for 31, Shoaib took three for 33 and Wasim finished with two for 20.
Pakistan survived a testing 10-over spell from off-spinner Muttiah Muralitharan, who snapped up three for 22, as they eased to success at 177 for five in 43.4 overs.
Waqar received the crystal trophy and a prize of $120,000 as well as being adjudged Man-of-the-Match while Sri Lanka were awarded $80,000. Zimbabwe, who lost all four of their round-robin matches, returned home with a cheque for $50,000.
Sri Lanka, who were seeking to complete a hat-trick of titles at Sharjah, won the toss but were let down by their premier batsmen as they played loosely at deliveries leaving them.
After slipping to 21 for two, skipper Sanath Jayasuriya and Mahela Jayawardena shared a stand 58 for the third wicket, but rash strokes undid all their hard work.
Jayasuriya, who was shaping well, smashed five fours in his 58-ball 34 before slashing at a delivery from leg-spinner Shahid Afridi to be caught behind.
Jayawardena, who hit Shoaib Akhtar for a six, fell in the same over, cutting a delivery way outside the off-stump straight to wicket-keeper Rashid Latif after making 43 off 60 balls, with seven fours and one six.
Russel Arnold and Chamara Silva added 40 for the sixth wicket before Wasim trapped Arnold leg before for 47 off 51 balls, with four fours.
The Sri Lanka innings folded with the dismissal of Arnold, the last five wickets tumbling for 21.
Pakistan, facing a modest target, raced to 73 for two by the 15th over with the dashing Afridi setting the tone with 35 off 38 balls before falling to Muralitharan.
Yousuf Youhana (40) and Inzamam-ul-Haq (28) put on 49 for the third wicket, and after they went and Younis Khan fell cheaply, Abdur Razzaq (14 not out) and Rashid Latif (23 not out) completed the task in 43.4 overs.
SRI LANKA:
S.T. Jayasuriya c Rashid b Shahid 34
D.A. Gunawardena c Azhar b Waqar 2
M.S. Atapattu c Rashid b Wasim 0
D.P.M. Jayawardena c Rashid b Shoaib 43
R.P. Arnold lbw b Wasim 47
K. Sangakkara c Rashid b Shahid 3
L.P.C. Silva lbw b Shoaib 10
W.P.U.J.C. Vaas not out 10
C. Buddhika lbw b Waqar 3
M. Muralitharan c Naved b Shoaib 3
P. Nissanka b Waqar 2
EXTRAS (LB-4, W-9, NB-3) 16
TOTAL (all out, 44.2 overs) 173
FALL OF WKTS: 1-9, 2-21, 3-79, 4-102,
5-112, 6-152, 7-156, 8-161, 9-164.
BOWLING: Wasim Akram 8-0-20-2 (4w); Waqar Younis 8.2-1-31-3 (1w); Shoaib Akhtar 8-0-33-3 (2nb, 1w); Abdur Razzaq 5-0-20-0 (1w); Shahid Afridi 10-2-45-2 (1nb, 1w); Azhar Mahmood 5-0-20-0 (1w).
PAKISTAN:
Shahid Afridi c Vaas b M’tharan 35
Naved Latif c S’kkara b Nissanka 23
Yousuf Youhana c and b Muralitharan 40
Inzamam-ul-Haq lbw b Vaas 28
Younis Khan c G’wardena b M’tharan 4
Abdur Razzaq not out 14
Rashid Latif not out 23
EXTRAS (LB-1, W-6, NB-3) 10
TOTAL (for five wkts, 43.5 overs) 177
FALL OF WKTS: 1-45, 2-73, 3-122, 4-130, 5-138.
DID NOT BAT: Azhar Mahmood, Wasim Akram, Waqar Younis, Shoaib Akhtar.
BOWLING: Vaas 10-0-35-1 (3nb, 1w); Nissanka 7-0-54-1 (1w); Buddhika 7.4-1-34-0 (1w); Muralitharan 10-3-22-3; Jayasuriya 8-0-29-0 (3w); Arnold 1-0-2-0.
RESULT: Pakistan won by five wickets.
UMPIRES: R.E. Koertzen (South Africa) and G. Sharp (England).
TV UMPIRE: E.A. Nicholls (West Indies).
MATCH REFEREE: D.T. Lindsay (South Africa).
MAN-OF-THE-MATCH: Waqar Younis.
MAN-OF-THE-SERIES: Mahela. Jayawardena.—Reuters