Following reports that 
                        some madrassas are training militants, the government 
                        has started collecting data about madrassas to check their 
                        source of funding and expenditure, sources told Fact. 
                        
                      The sources said that several militants 
                        trained at madrassas in remote areas were joining jihadi 
                        organisations and had indulged in sectarian and anti-state 
                        violence in Pakistan. The sources said that the Pakistan 
                        government had decided to end the enrolment of foreign 
                        students in Pakistani seminaries. “Now the government 
                        is trying to register seminaries to know more about what 
                        is being taught and where the funds are being spent,” 
                        they said. 
                      The sources said that intelligence agencies 
                        were compiling details about madrassas, students, syllabus 
                        and their funding sources. All these efforts are being 
                        done to prevent money laundering and the flow of undeclared 
                        funds to religious extremists, they added. The intelligence 
                        agencies have compiled data on 182 seminaries in Lahore 
                        so far.
                      According to a July 2003 report by the 
                        Security Council Committee about Al Qaeda, Taliban and 
                        associated individuals and entities, Pakistani bankers 
                        had estimated illegal money transactions of around $ 3 
                        billion every year, compared with only $1 billion through 
                        the legal banking system in 2003. The sources claimed 
                        that a major chunk of illegal money transactions went 
                        to religious extremists and terrorists.
                      President General Pervez Musharraf’s 
                        government issued an ordinance on August 18, 2001 to set 
                        up a Pakistan Madrassa Education Board (PMEB). The PMEB’s 
                        mandate was to set up model madrassas and to regulate 
                        and approve the conditions of existing madrassas on the 
                        recommendations of its academic council. The PMEB may 
                        also grant affiliations to existing madrassas in the private 
                        sector. The sources said that only 449 madrassas had applied 
                        for affiliation with the PMEB so far. They said that there 
                        was no confirmation whether a standard curriculum had 
                        been prepared for the affiliated madrassas. They said 
                        the PMEB had distributed questionnaires among madrassas 
                        to obtain voluntary information about their functioning. 
                        The PMEB hasn’t been authorised to force madrassas 
                        to register, the sources said. Religious activists have 
                        rejected madrassa reforms, saying they are part of America’s 
                        agenda. The sources said that some political parties feared 
                        that regulations for madrassa syllabi and funding would 
                        undermine their political independence.