Pakistani English is a variety of English language concerning Sentence structure, Morphology, Phonology, Spelling, and Vocabulary. The one semantic element, which makes the investigation of Pakistani English additionally fascinating is the Vocabulary. Pakistani English uses many loan words from Urdu language and other local dialects, which have become an integral part of Pakistani English, and the speakers don't feel odd while using these words. Numerous studies are conducted on Pakistani English Vocabulary, yet a couple manage to deal with morphology. Therefore, the purpose of this study is to explore the morphological integration of Urdu loan words in Pakistani English. Another purpose of the study is to investigate the main reasons of this morphological integration process. The Qualitative research method is used in this study. Researcher prepares a sample list of 50 loan words for the analysis. These words are randomly chosen from the newspaper "The Dawn" since it is the most dispersed English language newspaper in Pakistan. Some words are selected from the Books and Novellas of Pakistani English fiction authors, and concise Oxford English Dictionary, 11th edition. The results show that, when the Urdu language loan words are morphologically integrated in Pakistan English, they do not change their grammatical category. Moreover, four distinguished morphological process are identified in integration of these loan words. The results also reveal that deficit hypothesis is the main reason of this lexical borrowing.