Niazi's relatives said he had battled liver cancer for the past six months. He died at Mianwali in Punjab province.
He was elected to the National Assembly or lower house of parliament in 2002 as a member of the Pakistan People's Party-Parliamentarians.
Niazi later switched his loyalty to the PPP-Patriots before joining the PML-Q, which was created by Musharraf.
He was defeated in the 2008 general election, when the PML-Q was routed.
He subsequently joined Musharraf's All Pakistan Muslim League but resigned after he developed differences with the party's leadership.