Lollywood refers to the Pakistani film industry, based in the city of Lahore. The name is a conflation of "Lahore" and "Hollywood", and is inspired by the name Bollywood, used to describe India's film industry, based in Mumbai (formerly Bombay).

According to the website bollywhat.com, there were eleven studios in the 1970s and 80s that made over 100 movies annually. Cable television and widespread pirating of Bollywood videos sapped Lollywood's strength. The annual output has dropped to around forty films--all produced by a single studio.

Most of the Lollywood films are independent productions. Though studio productions are there, very few of them are made every year. Lollywood peaked in the mid 90s, a period during which movies such as Syed Noor's Jeeva and Samina Peerzada's Inteha (Extreme) were released, which are still running today. In July 2002, Javed Sheikh's Yeh Dil Aap Ka Huwa (This heart is yours), was released and is reputed to have grossed over 200 Million Ruppes (US $3.4 million) across Pakistan.

Though the magnitude of film production has decreased, that has been a result of Lollywood producers opting for budgets that are several times those that have been used to make Urdu films in the past, and results have been encouraging.

Lollywood is certainly not on the downswing, as it seems from the bollywhat.com article.