Blasphemy as a repugnant transaction. versus free speech as a protected transaction

Here's a headline from The Guardian which basically tells the whole of the news story:

Muhammad cartoon contest in Netherlands sparks Pakistan protests
Islamist leader says ‘only jihad’ is sufficient to punish ‘blasphemous’ Wilders stunt

"The Dutch prime minister, Mark Rutte, has termed the event “disrespectful” but defended the right to hold it on the grounds of freedom of expression.

"On Monday, Pakistan’s senate passed a resolution condemning the competition and Khan vowed to take up the issue at the UN general assembly in September. He said Islamic countries should cooperate to create laws against blasphemy similar to those against Holocaust denial in European countries."
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Here's the story in the Pakistani newspaper Dawn:

TLP rally on its way to Islamabad as demand for expulsion of Netherlands envoy remains unfulfilled

"The emotions of all Muslims against blasphemous caricatures is the same," Chaudhry, the information minister added. "A joint front is imperative against blasphemy."
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Update: Far-right Dutch MP cancels Muhammad cartoon competition
Geert Wilders drops plans for controversial contest in November following death threats

"“To avoid the risk of victims of Islamic violence, I have decided not to let the cartoon contest go ahead,” the far-right opposition politician said in a written statement on Thursday night.

"Wilders, who for years has lived under round-the-clock protection because of death threats sparked by his fierce anti-Islam rhetoric, said he does not want others put in danger by the contest he planned for November."