Wahab was 56.
She was a vocal leader of the party and held several important positions including that of information secretary.
She went into a coma after remaining in critical condition at an intensive care unit.
Her condition deteriorated yesterday night owing to the complications after her primary gall bladder surgery and despite the best efforts of the doctors she passed away.
"Her death is a great loss to the party and she has left a void that can't be fulfilled," PPP leader, Sharmila Farooqi said.
Moving scenes were witnessed outside the ICU of the hospital where leaders of the PPP and Mutthaida Qaumi Movement had gathered.
"She has passed away due to negligence of the doctors and the government will hold an inquiry into this," MQM Member National Assembly, Babar Ghouri said.
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Fauzia Wahab had been in the hospital for the last 23 days.
She was a close aide of slain former Prime Minister, Benazir Bhutto.