Reshma was in coma for a month, Geo TV quoted hospital sources as saying.
Born in Bikaner in India's Rajasthan state to a Banjara family around 1947, her tribe migrated to Karachi shortly after partition.
Dawn reported that she his survived by son Umair and daughter Khadija.
When she was just 12, a television and radio producer spotted her singing at Shahbaz Qalander's shrine. The producer arranged for her to record "Laal Meri" on Pakistan radio. She became an instant hit.
Reshma has been one of the most popular folk singers of Pakistan, appearing on television in the 1960s and recording songs for both the Pakistani as well as the Indian film industry.
Some of her songs include "Dama Dam Mast Kalandar", "Hai O Rabba nahion lagda dil mera", "Sun charkhe di mithi mithi cook mahiya meinu yaad aunda", "Wey main chori chori", "Ankhiyan no rehen de ankhyan de kol kol" and "Lambi Judai".
Bollywood remembers Pakistani singer Reshma
Indian film fraternity members were saddened by the death of legendary Pakistani folk singer Reshma in Lahore Sunday and expressed their grief via Twitter.
Actor Kabir Bedi shared the link of her performance to the popular song "Lambi judai" and wrote: "In memory of the legendary Reshma, a live performance of her. Unforgettable 'Lambi judaai'."
Filmmaker Anubhav Sinha posted: "RIP Reshma. You were a gift to us."
Author and journalist Sadia Dehlvi tweeted: "Just heard of singer Reshma's death. Recall meeting and listening to her several times over decades. May her soul rest in peace."
The singer was suffering from throat cancer for a long time, and breathed her last in Lahore Sunday morning, reported Dawn.
Reshma has been one of the most popular folk singers of Pakistan. She appeared on television in the 1960s and recorded songs for both the Pakistani as well as the Indian film industry.
Some of her songs include "Dama dam mast kalandar", "Hai O rabba nahion lagda dil mera", "Sun charkhe di mithi mithi cook mahiya meinu yaad aunda", "Wey main chori chori", "Ankhiyan no rehen de ankhyan de kol kol" and "Lambi judai".
Ustad Amjad Ali Khan: `May her soul rest in peace. Reshmaji ne duniya ko pyar aur mohabbat ka sandesh diya .Unke gaane meinm unke gaaneki adaayegi mein pyar aur shaanti ki pukaar tthi.Om shaanti shaani shaanti.`
Sajid Wajid: `Reshmaji's voice had magic. Jab bhi main unki Lambi judaai sunta hoon mujhe lagta hain koi mazaar pe gaana sun raha hoon. Bahot sukoon milta hai. She had an innocent and pure voice.She was the perfect sufi folk singer.`
Sunidhi Chauhan: `She was someone I really looked up to and was very inspired by. Sad that she is gone.`
Kavita Krishnamoorthy: `She was such a truly great singer. Really sad to hear of her going.`
Jackie Shroff(on whom Lambi judaai was filmed): `I will cherish the experience of emoting to Lambi judaai till the day I die.Her soul and soulful voice have not departed.They never will.`
Alka Yagnik: `Heartbreaking news.Was one of my favourite singers. Needless to say her soulful voice and songs are immortal. RIP, dearest Reshmaji.`
Alisha Chinai: `Is she really gone? Her soulful haunting voice will live forever.`
