Presidential Spokesman Ignacio Bunye said "nothing can justify such acts of terrorism" as he appealed for "sobriety and calm" among the Nepalese people after deaths of their countrymen reportedly spurred an attack on a mosque in Katmandu.
"We condemn this senseless act committed against Nepalese nationals. We call on all nations and race to join hands in appealing for a halt in violence (in Nepal)," Bunye said.
The Philippines recalled its 51-member humanitarian contingent from conflict-ridden Iraq two months ago in a move criticized by the United States, Australia and other allies as a concession to terrorists who threatened to behead a Filipino truck driver.
President Arroyo defended the decision by saying the governments priority is to save the lives of Filipinos. Angelo de la Cruz was safely released after more than two weeks in captivity.
In Nepal, protesters accused the government of not doing enough to secure the release of the 12 hostages.
The angry mob stoned buildings and blocked traffic by burning tires at main intersections and ransacked a mosque. Two demonstrators died in clashes with police.
Insurgents in Iraq took the 12 Nepalese hostage last month as they were en route to Baghdad from Jordan. A video was released last Tuesday on a website showing the gruesome killing of the hostages.
Even though Nepal has no troops in Iraq to help in post-war reconstruction, it was revealed that thousands of Nepalese have managed to slip into the Middle Eastern country to work for foreign contractors.
Bunye meanwhile said he sees no reason for the Nepalese government or other members of the international community to blame the Philippines for the continuing hostage-takings in Iraq.
He reiterated that the action of the Philippine government in the De la Cruz hostage-taking has been fully explained by the President.
"This is a policy and action for which we do not apologize," Bunye said.