Mr Malik made the announcement after attending a meeting called by President Asif Ali Zardari at Bilawal house. Mr Malik said he had ordered a review of all Indian fishermen in jails.
"We have decided to release all Indian fishermen in Pakistani jails and the process of scrutiny to decide how to go about the task will begin soon," Mr Malik said without giving information on their numbers.
According to civil activists involved in seeking legal release of Indian fishermen from Pakistan jails, around 168 fishermen are languishing in different jails notably in Malir jail in Karachi.
On Sunday, Pakistan's Maritime Security arrested 27 Indian fishermen for allegedly fishing illegally in its territorial waters and also seized six boats.
Pakistani authorities had released around 15 Indian fishermen from the Malir Jail on Diwali as a goodwill gesture.
Mr Malik's announcement to release the Indian fishermen comes at a time when tensions prevail between the two countries over firing incidents on the LoC.