Its main purpose was to produce quality feature films which highlights the public and national interests, and encourage the exhibition of Pakistani films abroad and import and distribution of foreign films in Pakistan. It offered financing of building of new cinemas and built their own cinema NEFDEC Cinema in Islamabad. It produced its first film Khak-o-Khoon in 1979 and introduced National Film Award in 1983. It was closed down due to politics, corruption, ineligibility and lack of interests by public, government and the film industry it self.
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