
The Dormant Promise of SAARC
The South Asian Association for Regional Cooperation (SAARC), established in 1985 in Dhaka, was envisioned as a cornerstone of economic cooperation and regional integration in South Asia. With eight member countries—Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka—SAARC sought to uplift nearly a quarter of the world’s population through collaboration in trade, education, energy, culture, and technology.
However, its potential has been stifled by deep-rooted bilateral conflicts—most notably between India and Pakistan. The last SAARC summit was held in Kathmandu in 2014. The 2016 summit, slated for Islamabad, was canceled after India withdrew in response to the Uri terrorist attack, which it attributed to Pakistan-based militants. Other member states followed suit, revealing the organization’s fragility under bilateral strain.
SAARC in the Shadow of India-Pakistan Rivalry
- Historical Baggage
India and Pakistan have fought three wars (1947, 1965, 1971) and several armed skirmishes, including the 1999 Kargil conflict and routine ceasefire violations along the Line of Control (LoC). Kashmir remains the epicenter of their territorial and ideological dispute.
These tensions frequently spill over into multilateral forums like SAARC. India accuses Pakistan of fostering cross-border terrorism, while Pakistan charges India with regional hegemony and obstruction of collective initiatives. For smaller member states, India’s perceived dominance is also a lingering concern.
- Pakistan’s Tilt Towards China
Pakistan’s deepening ties with China—especially through the China-Pakistan Economic Corridor (CPEC), part of the Belt and Road Initiative (BRI)—further complicate matters. India opposes CPEC’s passage through Gilgit-Baltistan, a territory it claims, viewing it as a sovereignty violation. Consequently, India remains reluctant to fully engage in multilateral economic ventures involving Pakistan.
The Cost of a Dysfunctional SAARC
- Economic Underperformance
- Intra-regional trade within SAARC remains dismally low—about 5% of total trade—compared to 25% in ASEAN and over 60% in the EU.
- Trade between India and Pakistan plunged from $2.3 billion in 2018 to near zero after Pakistan suspended bilateral trade in 2019 following India’s abrogation of Article 370.
- Agreements like SAPTA and SAFTA have failed to gain traction due to weak enforcement and deep mistrust.
- Missed Opportunities in Energy and Connectivity
- South Asia is energy-starved but resource-rich. Hydropower (Nepal, Bhutan), natural gas (Bangladesh), and solar energy (India) remain underutilized.
- Promising projects like the TAPI pipeline, SAARC Energy Grid, and cross-border railways remain stalled.
- Public Welfare and Regional Integration
- Despite shared culture, language, and geography, South Asia remains the world’s least integrated region.
- A functional SAARC could enable transformative cooperation in:
- Health – disease surveillance, regional vaccine development.
- Education – student exchanges, shared digital platforms.
- Climate – joint disaster preparedness and response systems.
Reimagining SAARC: Principles for a New Regionalism
- Flexible, Modular Cooperation (SAARC 2.0)
- Introduce a modular structure allowing subgroups of willing nations to collaborate on specific areas—energy, transport, or digital trade—without unanimous consent.
- This model is successfully applied in the EU (enhanced cooperation) and ASEAN (flexible participation).
- Issue-Based Integration
Rather than waiting for an India-Pakistan political thaw, SAARC can advance in less contentious but high-impact sectors:
- Climate Change
- Create a South Asian Climate Commission to coordinate adaptation strategies.
- Focus on rising sea levels (Maldives, Bangladesh) and Himalayan glacier melt (affecting water security).
- Disaster Management
- Form a SAARC Rapid Response Force for neutral emergency response during floods, quakes, or pandemics.
- Digital and Health Infrastructure
- Build a South Asian Disease Surveillance Network.
- Launch a SAARC Digital Health Passport for coordinated pandemic responses.
- Youth and Cultural Diplomacy
- Expand SAARC Youth Festivals, sports leagues, and university collaborations to foster regional identity.
- Economic Corridors and Digital Trade
- Enable cross-border e-commerce and digital marketplaces for SMEs.
- Consider a SAARC Digital Currency Sandbox to simplify trade without reliance on volatile currency exchanges.
India and Pakistan: What Do They Stand to Gain?
India’s Strategic Rationale
- Assert regional leadership by reviving a forum where India holds natural influence.
- Provide alternatives to China’s BRI through initiatives under BIMSTEC and BBIN.
- Reduce security threats through limited but productive engagement with Pakistan.
Pakistan’s Economic and Diplomatic Incentives
- Amid economic crisis—rising inflation, low forex reserves, energy shortages—Pakistan can:
- Access Indian markets for textiles and agriculture.
- Source affordable Indian pharmaceuticals.
- Break regional isolation as global focus shifts away from Pakistan.
What Role for Smaller Nations?
Smaller SAARC members often get caught in India-Pakistan friction. Yet, they can take initiative:
- Advocate for neutral reforms and issue-based cooperation frameworks.
- Promote trilateral initiatives, such as India-Bhutan-Nepal hydropower projects.
- Push for a permanent SAARC conflict-resolution mechanism, akin to the OSCE.
A Call to Action: Beyond Symbolism
SAARC must evolve beyond being hostage to bilateral hostilities. A pragmatic, layered, and non-binary approach is essential.
- The India-Pakistan conflict need not be ignored, but it must not paralyze the entire region.
- Let SAARC become a mosaic of cooperation, where willing nations move forward while keeping doors open for future reconciliation.
SAARC was never just about borders or trade—it was about a shared South Asian destiny, built on common rivers, histories, and futures.
India and Pakistan today face a choice: to let this vision wither or to revive it through reform. Revitalizing SAARC is not surrendering to political sensitivities—it is recognizing the region’s complexity and embracing cooperation over conflict for the betterment of nearly 2 billion people.
The time for symbolic summits is over. The time for smart, modular, and forward-looking regionalism is now.

