People and members of the media gather along a street in a Christian neighbourhood in Jaranwala. Reuters

Authorities in Pakistan are promising 2 million rupees ($6,800) in compensation for each of nearly 100 poor Christians who lost their homes when a mob angered over the alleged desecration of a Holy Quran stormed their neighbourhoods, burning at least 16 churches and damaging houses, officials said on Monday.

Police said they have arrested dozens more rioters in ongoing raids, bringing the total number of detainees to 160.

Mohsin Naqvi, the top official in Punjab province, made the announcement on X, previously known as Twitter, a day after he visited Jaranwala in Punjab, where hundreds of Muslims went on a rampage last Wednesday over allegations that a Christian man and his friend had desecrated Islam's holy book.

Naqvi held a Cabinet meeting at a burned church in Jaranwala to get approval for the compensation for the victims of last week's violence in the presence of local priests and residents.

Hundreds of terrified Christians who fled their homes have returned only to see destruction everywhere. They have been living outside their burned homes, fearing the structures may collapse.

"They are worried for their safety, they are worried for their children, who witnessed the tragedy and are traumatized," Christian Priest Khalid Mukhtar said. He said according to his information, all 26 churches in Jaranwala were attacked, burned or damaged.

Associated Press