The ex-captain had quit the international stage in March after being suspended in the wake of their winter tour to Australia.
But an inexperienced batting line-up proved costly at Trent Bridge and it will be hoped Yousuf will bring not only runs but also some much-needed resilience in the middle order.
Danish Kaneria has been dropped from the side after his poor show on a helpful pitch in Nottingham, where he returned with the disappointing match figures of 1-171 from 33 overs.
His replacement is the 18-year-old left arm spinner Hasan, who has represented his country at Under-19 level but has played just two first class matches in Pakistan.
Yousuf becomes the second player to return to the side after being banned following the winter tour down under, following Shoab Malik back into the team.
Coach Waqar Younis had cast doubt over Yousuf’s return on Saturday, claiming he would not be coaxed out of retirement.
England remain unchanged with Tim Bresnan keeping his place after replacing the injured Ajmal Shahzad before the game at Trent Bridge.
National selector Geoff Miller said: “We were delighted with the performance in the first Test but the key to consistency is building on that success throughout the rest of the series.
“We saw a number of outstanding performances at Trent Bridge, not only with bat and ball but also in the field, and the challenge is to maintain those standards over the next three Test matches.”
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BIOGRAPHY: Anthony Martial