He was 90 years old.
Pahad was a leading member of the Transvaal Indian Congress and the South African Indian Congress from the 1930s and worked closely with leaders such as Yusuf Dadoo and M Cachalia.
One of his tasks was to transform the Indian Congress from a moderate organisation into a militant liberation movement, the tribute said.
This was done in close contact and collaboration with the African National Congress and he was detained during the state of emergency in 1960.
He was a colleague and friend of leaders such as Nelson Mandela, Walter Sisulu, Albert Luthuli and other prominent figures of the 1950s and 1960s.
He is survived by his five sons Ismael, Essop, Aziz, Nassim and Zunaid, grandchildren and great-grandchildren.
His wife Amina passed away when they moved from London to Bombay during a time of exile.
"The family mourns the passing away of a good freedom fighter, a warm, generous and selfless human being," the statement said.
He will be laid to rest on Friday with the cortege leaving from 15, 2nd Avenue, Houghton at 9.30am.