Australia's thumping loss to Pakistan in the second Test in Abu Dhabi has seen their ICC Test ranking drop dramatically.

Australia fell to a demoralising 373-run defeat to Pakistan midway through the fourth day on Friday and as a result saw their Test ranking drop by two places.

Heading into the contest Australia were ranked as the third-placed Test nation, but they slipped two places and are now the fifth-ranked nation in the world.

Australia started the second Test with only India and South Africa ahead of them, but the loss saw England and New Zealand rise above them into third and fourth place respectively.

Despite their large triumph, Pakistan remain in seventh place in the Test rankings, with Sarfraz Ahmed's side still behind sixth-placed Sri Lanka.

Australia's next five-day contest will be at home against No.1 ranked India, with the first Test commencing in Adelaide on December 6.

Pakistan have a three-match Test series in the UAE against New Zealand that starts on November 16.