Ahmed was undergoing treatment for last two and a half months following neurological problems at a private hospital in Cuttack.
Ahmed served as health minister in chief minister Biju Patnaik's cabinet from 1990 to 1995.
People from various walks of life have mourned over his demise.
Biju Janata Dal leader Baijayant Jay Panda expressed his deepest condolence on the demise of the former minister.
"Saddened to hear of the passing of Mustafiz Ahmed, former MLA from Cuttack & Minister, who had been ailing. I'll go to pay my last respects," he tweeted. (ANI)