Lehri, 83, had been bed ridden and ill for the last two years. He passed away in the intensive care unit of the hospital after his family members decided to remove the life support system.
His family had admitted the actor to the ICU last month after his condition had deteriorated due to respiratory and kidney problems.
Doctors said that they could keep a patient on the ventilator for a maximum of 14 days.
Prime Minister Raja Pervez Ashraf expressed deep sorrow and grief over the demise of renowned comedian in a message to his family and termed his sad demise an "irreparable loss" to Pakistan's entertainment industry.
Lehri was part of around 225 films in his illustrious career and was well known for his comic and character roles in films as well as television dramas.
The winner of the national film awards several times, Lehri's most memorable role came during a few appearances in the hit comedy serial, 'Angan Tehra'.
His comedy style was appreciated by the public and he ruled the Pakistani film industry in the 60s and 70s, the best period till date.
Lehri's first film "Anokhi" was released in 1956, and his last production was "Dhanak" in 1986. The vast majority of his films have been in Urdu, though he did perform in a few Punjabi productions.
