The Black Caps are 64 runs ahead with a session and a day to play to square the three-Test series after gaining a slender ten-run lead by dismissing Pakistan for 393.
New Zealand had made 403 in their first knock.
At the break Brendon McCullun was not out on 41 and Kane Williamson was batting on four.
New Zealand lost opener Tom Latham for nine, caught sweeping off leg-spinner Yasir Shah.
He was the last man out in the second over after lunch by McCullum, hitting 16 boundaries in a 215-minute stay, his innings balancing the match after New Zealand looked set for a big lead.
Sarfraz added a record 81 runs for the unfinished tenth wicket stand with Rahat Ali (16 not out).
Sarfraz hit three boundaries in one Mark Craig over and then two more off leg-spinner Ish Sodhi to come within four runs of his hundred.
He ran a full circle in jubilation, thumped his bat in the air to warm applause from his team-mates in the dressing room.
It was Sarfraz, 28 overnight, who anchored the batting after Pakistan resumed the day on 281-6.
Paceman Tim Southee (3-67) removed Yasir Shah in the third over of the day, caught behind for two and just two runs later Trent Boult (2-69) trapped Ehsan Adil leg-before for nought, leaving Pakistan in danger of conceding a big lead.
Pakistan won the first Test by 248 runs in Abu Dhabi last week.
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