Culture Minister Ghazi Gulab Jamal made the remarks Wednesday. But the Daily Times did not say Thursday the context in which he made the statement. But their screening had triggered an animated debate in Pakistan.
Opening amid media hype and fanfare, many Pakistanis went to see the films out of curiosity while others said they had seen them on CDs and DVDs.
Speaking in the National Assembly, the minister said "Mughal-e-Azam" and "Taj Mahal" "in fact represented Muslim culture" and screening such films was allowed in Pakistani cinemas as part of confidence-building measures between the two countries.
Many in Pakistan feel that India should also purchase Pakistani films. Touching upon this, Jamal said Pakistani movies were not shown in India "probably because they were not of good quality".
However, six Pakistani films will be screened in India during a film festival there, he added. Pakistan is a regular participant at the annual International Film Festival of India.
While Indian films have been banned for the last four decades to prevent a "cultural invasion" by India, there is no serious opposition to films from the West.
Jamal said exhibition of 38 English films was allowed since January 2005 after they were examined and certified by the Central Board of Film Censors.