Harmison's hostile six for 19 off 13 overs after Pakistan had opted to bat on a fast but blameless track was the second-best performance of his career. The first match of the four-Test series was drawn.
It was the second lowest first innings total at Old Trafford since England scored 95 against Australia in the first game at the ground in 1884.
Relishing the rock-hard surface, Harmison removed both openers with just nine runs on the board to start the rot but the touring side played almost as big a role in their own demise, continuing to go for extravagant shots as the innings imploded.
The last eight wickets fell in 14 overs and the key phase of play came in four overs either side of lunch, during which four wickets -- including those of vice-captain Younis Khan, Mohammad Yousuf and captain Inzamam-ul-Haq -- fell for three runs.
One minute it was 90 for two and suddenly it was 93 for six.
Left-arm spinner Panesar took three for 21.
Yousuf's dismissal for a silky 38 sparked the collapse after he and Younis had put on 81 for the third wicket.
Yousuf, who made a double century in the opening Test, had hit six fours when he looked to glide Panesar's fourth ball towards third man, instead feathering a catch behind to Geraint Jones.
Three balls later, and in the final over of the session, Younis slashed wildly at a short ball from Harmison and was caught in the gully by Paul Collingwood after making 44.
That made it 93 for four at lunch and Panesar struck again five balls after lunch when Faisal Iqbal (3) was caught behind off an attempted cut.
Pakistan's fate was sealed when Inzamam fended a Harrison lifter to gully without scoring.