The retired general has been humiliated since returning in March from self-imposed exile to contest elections and is currently under house arrest.
A spokeswoman for the All Party Muslim League today told AFP that the decision was taken after a court on Tuesday banned the former ruler from contesting elections for the rest of his life.
"We were expecting justice from courts but instead they banned Pervez Musharraf for (his) whole life," Aasia Ishaque, information secretary for the party, told AFP.
The decision to boycott the poll will likely have little effect on the outcome of the election, as the party had drummed up very little support.
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Musharraf had promised to "save" the country from militancy and economic collapse but was barred from running as a candidate over charges dating back to his 1999-2008 rule.
Musharraf is being held under house arrest over the 2007 murder of opposition leader Benazir Bhutto and for sacking judges in 2007 when he imposed emergency rule.