Thousands marched in Pakistan's southern port city of Karachi Saturday against an anti-Islam movie made in the US, which has sparked protests across the world, the local media reported.

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Moderate Sunni groups organised the procession which concluded peacefully after leaders delivered speeches and demanded an international law to ban insult to religions under the excuse of freedom of expression, Xinhua reported.

The leaders denounced the US for refusing to ban the blasphemous movie despite demands from the Islamic countries.

Religious cleric Mufti Muneeb-ur-Rehman told the rally that Islamic parties support freedom of expression but the notion should not be used in the West to promote hatred against religions.

He also condemned caricatures published in a French magazine and urged the US and other western and European nations not to allow a handful of people to indulge in blasphemous acts.

The authorities in Karachi had earlier announced a three-day ban on rallies over security concerns but talks between the organisers and the police officials agreed to allow the rally on the condition that the participants will remain peaceful.

Heavy contingents of police and paramilitary troops had been deployed along the route of the procession. The demonstration ended peacefully after the leaders delivered speeches.

The participants were holding banners and placards inscribed with slogans against the movie and demanding ban on it. They also called for removal of the video from the internet.