This is stated in the 'International Religious Freedom Report 2005', released on Tuesday by the Bureau of Democracy, Human Rights, and Labour.
The report added that as part of its education reforms initiative, the US continued to help the Education Ministry of Pakistan revise its curriculum. It said, US Embassy officials remained engaged with all parties involved in madrassah reform to encourage similar changes.
The United States provided substantial financial support to the government's curriculum reform initiative, which included eliminating the teaching of religious intolerance.
"Embassy officials regularly monitored progress on madrassah reform and encouraged such progress," it stated.
The report added that during the period covered by this report, the Ambassador met with the Religious Affairs Minister to obtain his views on progress towards reform and to urge government co-operation.
Senior State Department and Education Department officials also raised concerns about the need for swift reform of the madrassah system with the Education Minister.
"Embassy officials encouraged and facilitated study by those involved in madrassah reform of the relationship between religious schools and state authorities in the United States, as a possible model for Pakistan."
"The Embassy continued programmes designed to promote religious tolerance and better understanding of religion in the United States."
In April 2004, it provided financial support for the annual American Studies conference organised by the Area Study Center of Quaid-i-Azam University focused on "Politics and Religion in the United States."
Also in April, a Fulbright scholar from the Department of Theology at Loyola University spent two weeks working with the faculty of the Islamic Research Institute. A grant enabled an NGO in Karachi to conduct a series of video conference discussions with US interlocutors on the challenges of bringing up young people in the Islamic faith in the modern world.
The annual report states that the US government discusses religious freedom issues with the government as part of its overall policy to promote human rights.
During the period covered by the report, Embassy officials closely monitored the treatment of religious minorities and took a number of steps to improve their treatment.
The report added that the US Embassy officials pressed Pakistani parliamentarians and the government to revise blasphemy laws and the Hudood Ordinance.
The US Embassy also expanded contacts with all religious groups to promote moderation to end sectarian strife and religiously motivated violence, and to support efforts at interfaith dialogue.
The report said missionaries are allowed to operate in the country, and proselytising "is permitted as long as there is no preaching against Islam."
Islamic religious schools are regulated by the government. In accordance with the 2002 Madrassah Registration Ordinance, all madrassahs were required to register, cease accepting foreign financing, and accept foreign students only with the consent of their government.
Out of an estimated 13,000 to 15,000 madrassahs, only a few hundred are not registered with one of the five independent madrassah boards and/or directly with the government.
The Pakistan government and the independent madrassah boards have agreed to a phased introduction of modern subjects, including math, English, and science at all madrassahs. While the boards have required their affiliated madrassahs to move forward, disbursement of promised government funding to support the process has been slow.
"The government, at its most senior levels, continued to call for interfaith dialogue and sectarian harmony as part of its programme to promote enlightened moderation."
"It was instrumental in organising the inaugural meeting of the World Council of Religions, an interfaith body of clerics and religious scholars devoted to interfaith dialogue.
The President addressed the opening meeting in September 2004, and the Religious Affairs Ministry and provincial governments remained active in the group's activities. The Religious Affairs Ministry and the Council on Islamic Ideology, a constitutionally mandated government body, continued to sponsor interfaith and intersectarian workshops and meetings.
The Religious Affairs Ministry played an active role in negotiating the intersectarian injunction against sectarian violence and the killing of non-Muslims in the country issued in May 2005."