Parachinar remains under a curfew
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Authorities in north-west Pakistan say Sunni and Shia Muslims are continuing to exchange gunfire, with five people killed in the latest clashes.
Another five were reported hurt in the violence in Chardewar in the Kurram tribal agency near the Afghan border.
The number of people killed in a week of violence in the area has now passed 40, with over 70 hurt. However, local tribesmen say the toll is much higher.
The main town of the area, Parachinar, is under a curfew for a sixth day.
Rally
A local official told the BBC that the latest fighting was concentrated in three to four villages near the border.
A 40-member delegation of tribal elders has now reached Parachinar to try to broker a peace.
Army helicopter gun ships have been seen in the Parachinar area, but local residents accuse the government of failing to take action in the initial days of the outbreak of violence.
Trouble began last Friday when unidentified people began shouting anti-Shia slogans near their mosque.
The apparent reason was tension over a rally organised by Sunnis to celebrate the birthday of the Prophet Muhammad.
Shias accuse Sunnis of using abusive language against them in the rally.
Officials said that at least 40 people were killed and dozens wounded in two days of clashes.
Heavy weapons
The authorities sent troops to Parachinar, about 250km (150 miles) south-west of Peshawar, in North West Frontier Province, to restore order.
Sectarian violence has plagued Pakistan for years with Parachinar suffering a number of Sunni-Shia clashes.
Shias in Parachinar have been protesting against sectarian killings
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Last year a dispute over a shrine left about 20 people dead.
The violence prompted officials to issue orders to shoot-on-sight any person violating the curfew.
Both sides used heavy weapons in the clashes.
Gunfire directed at Shias by unidentified attackers led to raids on Sunni businesses and homes.
Local Sunni leader Shirin Mengal said about 400 Sunni homes and shops had been burned.
Minority Shias make up about 15% of Pakistan's population of 160m.
Differences between Sunnis and Shias date back to the very earliest days of Islam.
They are directly linked to the issue of succession following the death of Prophet Muhammad.
The Shia believe that after Prophet Muhammad's death, his son-in-law, Ali, should have been given the reins of administration.
They still regard him as the first imam or spiritual leader.
The Sunni, however, believe that the appointment of one of the Prophet's companions, Abu Bakr, as the first Caliph was correct.