The move shows religious solidarity six years after the Christian community was attacked in the area.
Villagers in Khaksabad are donating towards the building of a new mud chapel for the Christian community.
Funds are being given after their previous church was swept away by the monsoon rains, according to The Independent.
Dilawar Hussain, a Muslim shopkeeper, told Asia News: "I learnt about the project in a community meeting last month.
"A church is also a house of Allah; praying is what matters.
"We worship the same God."
People in the community are giving as much as they can spare, with donations ranging between £20 and £105.
Villager Ijaz Farooq told the BBC: "After local riots, we are trying to bring people together even more.
"We have increased our activity so we don't have to face something like that.
"By building this church, we want to show that we are united as a community."
Once the building is complete, Christians in the village will not have to rent or borrow a house to celebrate Christmas or Easter, or gather together anymore.
