The third-ranked Dutch were on top throughout and led 3-1 at halftime before scoring twice more in the second half for an emphatic win.
The Netherlands will now face the winner of Saturday's other semi-final between Australia and India in Sunday's final.
Striker Billy Bakker said the Dutch were pleased with their progress throughout the tournament.
"We have a good team and before we came to Melbourne we had a goal to play in the final, minimum, and hopefully to take the gold back to the Netherlands," Bakker said.
Bakker said he expected to meet Australia in the final and described them as the tougher side.
"There will be no more open spaces like we had today in the second half. It will be two teams who will be playing at high speed, and we will see.
"Our main goal is the World Cup (in 2014) in our own country and if we want to win there we have to win the Champions Trophy or the European Cup so it will be a good experience for us, and it's a good feeling."
The result was a disappointment for Pakistan but they must respond quickly for the playoff for the bronze medal against either Australia or India on Sunday.
Pakistan's Shakeel Abbasi said his team was disappointed, however they still had plenty to play for in the bronze medal match.
"We are still in the medal race so we will try our best. Today Holland played well but in the start we had a few chances," Abbasi said.
"We will try our best because it is a medal match and a medal match is always a good match."
The Dutch began in terrific form, with Pakistan looking shell-shocked.
It was not long until the Dutch confirmed their dominance with Bakker scoring the first of his two goals only two minutes into the match.
Having been given far too much space into their circle, the Netherlands continued to attack with Severiano van Ass making it 2-0 at the 20 minute mark.
Pakistan were given a gift minutes later when an own goal was scored off the stick of Netherlands defender Bob de Voogd.
However a second Bakker goal gave them the momentum before half time with a commanding 3-1 lead.
The Dutch powered on in the second half with two more goals before Abbasi scored a late consolation goal.
In the earlier qualification matches, Belgium dominated England 4-0 for their first ever Champions Trophy win, while Germany held off a determined New Zealand to win 6-4.
COMMENTS (10)
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good to pakistan hockey palying well best of luck pakistan team and players
The truth lies on their side.They plan to play all matches with predetermined 'win' conviction, by adopting with scientific approach. In fact they have made games/sports as exact sciences. Whereas we pin our hopes on 'emotions' and chances, yes 'golden' chances and help from 'Above'. It was just a chance win by 2-1 against defending Champion Germany but the Dutch easily made our head level on ground, with 5-2 win, but we must have to out-do India, whenever, wherever we meet in sports.
next match pakistan vs india...revenge for 2011, 2003, 1999, 1992, 1971 and 1965!!! of course im kidding..its just a game lolz
Forget about Australia and Holland, India-Pakistan finals is taking place tomorrow.
we need fresh blood after every 2 years like the European.
Its ok. Well done Green and we are back on the hockey map ;-)
Pak vs India for third place
Sad. But ok. The problem that I see is that we are not converting our chances to goal. But koi nahin, this is way better than being so far out in the wilderness that no one even remembered us. At least we're back!!
no problem...we are proud of you.....well played...u made us proud....reaching semis first time in 8 years.....that is already a good news..............keep working hard....u will reach top.....
I have been following hockey on-off since the 2000 olympics and noticed that pakistan seem to lack consistency in consistently beating these europeans goliaths. can anyone explain why this has been the case for the last 12 years? otherwise rehman malik should form a task force to investigate this