The 51-year-old director, however, said Hindi films, featuring Pakistani actors, which are set for release should not be banned.
When asked for her views on Pakistani artistes working in Bollywood, Farah said at the Bridge Conclave here, "There are a handful and I suppose not even a handful, we are only talking about two and when they did those movies it wasn't illegal to have Pakistani actors working in the movie.
"I don't think it's fair to ban those movies. I think from now on we are saying that we should not work with them. We have enough talent in our country and we should work with the people from our own country. What do we not have amongst the talent that they have. We are far better. I would definitely prefer to take somebody from my country in my movies."
The party also threatened to stall the releases of "Ae Dil Hai Mushkil", featuring Fawad in a cameo, and "Raees", Mahira's Bollywood debut.
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Subsequently, Indian Motion Picture Producers Association passed a motion to ban artistes from across the border from working in the industry till Indo-Pak relations are normalised.
Meanwhile, Farah also said it's sad that there are not many commercially successful woman directors in Bollywood.
"It is so sad if I am the only commercially successfully female director. It is really a sad state of affairs if I am still the only commercially successful woman director. We need a lot more commercially viable women, not only in direction," she said.
"I think I am fighting the battle head on with male directors. I am not anti-men I believe truly that we are meant to be equal. We should be judged equally and I think I am a living example of feminism," she said.
The director also remarked that the Hindi film industry works around two things-- chivalry and chauvinism.
"Bollywood doesn't care about your gender, orientation or origin. There are two aspects around which the dynamics of Bollywood revolve- chivalry and chauvinism," she said.