"The film is banned. Its content was disapproved," Satish Anand, who was to distribute the movie in Pakistan, told IANS via social media.
The spokesperson for the film in India too confirmed the development.
This is not the first time Pandey's movie is not releasing in Pakistan. His movies "Baby" and "Naam Shabana" -- both of which dealt with intelligence agencies on a chase for terrorists -- too did not make it to the screens there.
"Aiyaary" is set against an army backdrop. It features Sidharth Malhotra and Manoj Bajpayee playing the roles of army officers in a storyline that brings to the forefront corruption within the system.
In India, the movie got a green signal for release after the Central Board of Film Certification reviewed the film, followed by a screening for the Ministry of Defence, which prescribed certain modifications.