"This is an occasion for the 1.5 billion Muslims to look at the seriousness of this decision," Mohammed Ijaz ul-Haq, religious affairs minister, told the Pakistani parliament in Islamabad. "The west is accusing Muslims of extremism and terrorism. If someone exploded a bomb on his body he would be right to do so unless the British government apologises and withdraws the 'sir' title."

After his comments were reported on local news stations, Mr ul-Haq told MPs that his aim had been to look into the root causes of terrorism.

The comments follow other condemnation of the award for Rushdie, whose novel The Satanic Verses provoked worldwide protests over allegations that it insulted Islam.

He received the knighthood for services to literature in the Queen's birthday honours list published on Saturday.

Earlier today Pakistani MPs demanded Britain withdraw Rushdie's knighthood.

A government-backed resolution condemning the author's knighthood was passed unanimously by the lower house of the Pakistani parliament amid angry protests across the country.

MPs said the honour was an insult to the religious sentiments of Muslims. In the eastern city of Multan, hardline Muslim students burned effigies of the Queen and Rushdie, chanting "Kill him! Kill him!"

Pakistan's minister for parliamentary affairs, Sher Afgan Khan Niazi, who proposed the resolution condemning the honour, branded Rushdie a "blasphemer".

She told MPs: "The 'sir' title from Britain for blasphemer Salman Rushdie has hurt the sentiments of the Muslims across the world. Every religion should be respected. I demand the British government immediately withdraw the title as it is creating religious hatred."

Also today, Muhammad Abdul Bari, secretary-general of the Muslim Council of Britain, said many Muslims would regard the knighthood as the final insult from Tony Blair before he leaves office next week.

"Salman Rushdie earned notoriety amongst Muslims for the highly insulting and blasphemous manner in which he portrayed early Islamic figures," Dr Bari said.

"The granting of a knighthood to him can only do harm to the image of our country in the eyes of hundreds of millions of Muslims across the world. Many will interpret the knighthood as a final contemptuous parting gift from Tony Blair to the Muslim world."

Yesterday, Iranian politicians accused Britain of insulting Islam by awarding the knighthood to Rushdie, who was forced into hiding for a decade after the country's late spiritual leader, Ayatollah Khomeini, issued a fatwa calling for his assassination.

Mohammad Ali Hosseini, a spokesman for Iran's foreign ministry, said the decision to honour the novelist was an orchestrated act of aggression directed against Islamic societies.

He said Rushdie was "one of the most hated figures" in the Islamic world.

"Honouring and commending an apostate and hated figure will definitely put the British officials [in a position] of confrontation with Islamic societies," Mr Hosseini said.

"This act shows that insulting Islamic sacred [values] is not accidental. It is planned, organised, guided and supported by some western countries."

"Giving a badge to one of the most hated figures in Islamic society is ... an obvious example of fighting against Islam by high-ranking British officials."

The Iranian government formally distanced itself in 1998 from the original fatwa against Rushdie, issued in 1989 by Khomeini.

But shortly after it disavowed the death edict under a deal with Britain, the Iranian media said three Iranian clerics had called on followers to kill Rushdie, saying the fatwa was irrevocable and that it was the duty of Muslims to carry it out.

A spokesman for the Foreign Office said the honour was "richly deserved" and the reasons for it were "self-explanatory".

In a statement after the announcement of his knighthood on Saturday, Rushdie, 59, said he was "thrilled and humbled to receive this great honour".