The apex court headed by new chief justice Jawwad S Khawaja also cancelled all existing permits issued for hunting purposes.
The decision, in response to a petition filed by an advocate, is a shock to the ruling Pakistan Muslim League-Nawaz government having close ties with Gulf rulers.
The government had previously issued several special permits to rich Arab ruling dignitaries to hunt in Pakistani areas.
The issue of hunting came into limelight after a report last year showed Saudi prince Fahd bin Sultan bin Abdul Aziz Al Saud killed over 2,100 houbara bustard in a cruel 21-day campaign in clear violation of his permit to hunt only 100 birds.
The meat of houbara bustard is considered as having aphrodisiac qualities by the Arabs.