The boycott was imposed after some Indian film-makers had banned Pakistani actors from working in Bollywood films.
Bollywood is popular in Pakistan, and the self-imposed ban is reported to have led to a dramatic loss of revenue.
The move followed a surge in violence in Indian-administered Kashmir.
Film distributors and cinema owners in Pakistan said they would resume screening the films on Monday.
Pakistan first imposed a ban on Indian films following the Indo-Pakistan war of 1965. The ban was eventually lifted in 2008.
Disputed Muslim-majority Kashmir has been a flashpoint for decades and has sparked two wars between India and Pakistan, which both control parts of the territory.
Today it remains one of the most militarised zones in the world.
In September, an attack on an army base in Uri in Indian-administered Kashmir claimed the lives of 18 soldiers. It was the deadliest of its kind for years.
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