The Pakistani Film Exhibitors Association has filed a petition in the Sindh High Court asking for permission to import and screen Indian films in film theatres.
Amicus curiae Qazi Faez Isa argued that the ban was irrational and resulted in closing down of about 925 cinemas over the years.
The ban also brought down the number and quality of feature films produced in Pakistan.
"The industry is in dire straits and the court can take judicial notice of the consequences of an unreasonable ban," he was quoted as saying by Dawn newspaper.
The lawyer, along with Advocate-General Anwar Mansoor Khan, has been asked by the bench, which consists of Justices Mushir Alam and Syed Zawwar Hussain Jaffery, to assist it in deciding two petitions moved by the Pakistan Film Exhibitors Association and Mahboob Pictures for permission to import and screen Indian films.
Earlier, the association's counsel Mahmood Mandviala submitted copies of documents showing that "there was no restriction whatsoever on import and exhibition of Pakistani films in India" to controvert federal government counsel Sofia Saeed Shah's claim that the curbs on cinematographic material between India and Pakistan were mutual and bilateral.
Isa said that 55 per cent of the price of a cinema ticket went to public coffers and the exhibition of Indian films would generate public revenue.
When all manner of Indian films are aired on cable, even Pakistani TV channels earn no taxes earned and no jobs are created, he said.
Pirated videocassettes and CDs of Indian films infringe intellectual property rights without yielding any corresponding benefit, he added The influx of unregulated and uncensored Indian, European and American films was causing all-round damage.
If Indian films were to be shown in cinema houses, they would be subject to control and censorship, he said. The ban on Indian films, the lawyer said, had failed to achieve the desired results.
On the contrary, it produced negative consequences that were not foreseen at the time of its imposition. The court was fully empowered to intervene to put an end to the lopsided policy.
Permission was given for screening of Mughal-i-Azam and Noor Jahan while the ban was in force. Indian films were also shown at festivals. The ban was effective only in as far as cinemas were concerned, he argued.