While Pakistan would welcome actors from India, "films picturised in India" would not be allowed into the country, Culture Minister GG Jamal has said.
He however added that foreign movies starring Pakistani and Indian stars could be exhibited in Pakistan. The Pakistan Censor Code had been amended to facilitate such productions.
The minister told NNI news agency that the purpose of the decision was "to promote Pakistani film stars and other people linked with the industry, so that the films of international standards could be produced."
The minister made no comment on why Pakistan TV's "telethon" featuring Indian film stars had to be called off last week.
A host of Bollywood artistes were scheduled to participate in it for collecting funds for the October 2005 earthquake victims, but cancelled the visit after poet-writer Javed Akhtar was denied a visa.
Jamal said that a festival of Pakistani movies would be held in India in the last week of July or in the beginning of August. Six movies had been selected for the festival.
A National Film Academy would be established, the minister said, adding that the services of the private sector were being sought for the purpose, Daily Times reported.
Lamenting the dwindling number of cinema theatres in Pakistan, the minister said there were 1,500 cinemas in Pakistan a few years ago, but now only 211 remained.