In a highly controversial decision, Trump also decided to shift the US embassy to Jerusalem from Tel Aviv.
The Treasury and opposition benches in the National Assembly joined hands to pass the resolution which termed Trump's decision as a direct attack on Muslims at a time when the Middle East is already beset with wars and conflicts.
It said the US move violates the international law, several resolutions of UN Security Council over the matter, and Global consensus on how to resolve the Palestine conflict.
Earlier, the Foreign Office in a statement condemned President Trump's decision.
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"Pakistan joins the international community in expressing its strong opposition and condemnation at the decision of the US Administration to recognise the occupied city of Al Quds Al Sharif (Jerusalem) as the so-called capital of Israel and the plan to relocate its Embassy there," the Foreign Office said.
Pakistan said that it was deeply regrettable that pleas from countries across the globe not to alter the legal and historical status of Jerusalem have been ignored, "more out of choice than necessity".
Pakistan said it was a serious setback to the rule of law and international norms and signals a severe blow to the Middle East peace process as well.
Pakistan shares the international outrage and is deeply concerned over the implications of this decision for international peace and security, especially in the Middle East and calls upon the UN Security Council to take cognizance of this situation and take steps in accordance with the UN Charter.
The FO also urged the United Sates to revisit its decision as soon as possible in order to avoid the potentially grave repercussions in the region and beyond.