02-07-2025
- Business
- Business Recorder
Why SAARC still matters
The leaders of South Asia must recognize that the true potential for real and meaningful progress lies not in abandoning SAARC but in revitalizing it. Any consideration for establishing a new regional bloc to offset SAARC, risks further fragmenting South Asia rather than uniting it. SAARC's stagnation stems from bilateral disputes and not structural flaws; replacing it with a bloc perceived as aligning with specific geopolitical interests could deepen divisions rather than bridge them.
SAARC is not merely a diplomatic forum; it is a homegrown initiative rooted in shared geography, history, and cultural ties that bind South Asia together.
SAARC frameworks such as the South Asian Free Trade Area (SAFTA), the SAARC Development Fund (SDF), and the SAARC Visa Exemption Scheme, are already in place but underutilized. Any new bloc would lack these established mechanisms, requiring years to replicate what SAARC has already built. For example, SAFTA potential to boost intra-regional trade beyond its current 5 percent remains untapped due to political barriers, not institutional inadequacies.
The call to revive SAARC is not nostalgic but pragmatic. The region 2 billion people 50 percent of whom live in poverty need SAARC frameworks to prioritise development over politics. Instead of sidelining SAARC, South Asian leaders must separate bilateral disputes from regional agendas, as ASEAN has done; fully operationalize SAFTA, expand visa exemptions, and launch joint infrastructure projects; scale up student exchanges, cultural programs, and trade delegations to build trust.
SAARC's foundations are solid; its tools are ready. What missing is the political courage to prioritize regional prosperity over narrow rivalries.
Had SAARC remained active after its 18th Summit in 2014, it would have convened its 23rd Summit by 2024 and been preparing for a 24th, potentially providing an institutional mechanism to de-escalate tensions during the recent major conflict that brought India and Pakistan to the brink of war.
The recent escalation between India and Pakistan has severely jeopardised peace across South Asia, exacerbating regional instability in the absence of functional diplomatic platforms like SAARC.
The South Asian Association for Regional Cooperation (SAARC) has historically played a pivotal role in easing tensions among member states, prioritizing regional cooperation and the welfare of South Asian citizens. Notably, it has helped to mitigate conflicts, particularly between Pakistan and India, by facilitating dialogue and promoting peace.
SAARC revival remains elusive. While member states maintain representatives at the Kathmandu Secretariat, the regional body remains largely inactive, raising questions about the political will for cooperation.
SAARC has historically played a crucial role in promoting dialogue and cooperation among its member states. However, since the postponement of the 19th SAARC Summit scheduled for 2016 in Islamabad, Pakistan, a significant dialogue among member states has been absent.
SAARC's strength has never been about resolving political disputes directly, but about building everyday trust through student exchanges, shared markets, and coordinated disaster responses. These mechanisms are vital for peace. The South Asian University, based in New Delhi, was a visionary initiative. But imagine if it had branches in every member country, allowing students to study in Pakistan's mountains, Sri Lanka's coastlines, Indian plains or Nepal's valleys. These shared classrooms would help dissolve stereotypes and build lifelong friendships. More exchange programmes would connect youth across borders, creating a generation shaped by shared experiences, not divided by old narratives.
SAARC has already contributed to people's well-being. Health clinics supported by the SAARC Development Fund (SDF) have quietly saved lives in remote areas. Food banks helped in times of drought. But these successes remain limited in reach. With stronger political support, such initiatives could grow, perhaps into regional vaccine drives or emergency response teams that move quickly across borders during disasters. These actions reflect the true spirit of SAARC: regional unity to improve the lives of ordinary people.
People visiting sacred sites across borders, craftswomen selling handmade textiles in neighbouring countries, or students pursuing education beyond their homeland are not grand political gestures, but simple human aspirations. Yet, current visa systems restrict such movements. The SAARC Visa Exemption Scheme, which allows limited travel for businesspeople, issues around 200 visas per country each year, a drop in the ocean for a region of two billion. For trade, tourism, and trust to flourish, this number must grow. A common SAARC tourist visa, long discussed but never implemented, could transform mobility in the region.
Despite political pauses, the foundation of SAARC is solid. Signed agreements on energy, connectivity, trade, and social development await fuller implementation. What is needed now is not new declarations, but action. Scholarships for students, simplified travel rules, affordable flights, and business-friendly border policies could bring immediate benefits. Each time a young person crosses a border to study, a trader expands market, or a family visits a sacred place, the dream of SAARC lives on. When SAARC was functioning, summits offered space for dialogue and cooling of tensions. For example, previous meetings helped ease situations after the Kargil conflict and during military stand-offs. Today, with SAARC not functioning at its full potential, countries lack the diplomatic cushions that once helped avoid escalation.
And yet, there is hope. Indian External Affairs Minister recently said that 'SAARC is not off the table.' Pakistan, Bangladesh and other member countries have also expressed support for its revival. Leaders from Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives, and Afghanistan have long stood behind the vision of SAARC. All maintain their diplomatic presence at the SAARC Secretariat in Kathmandu. The challenge is not about structure; it is about political will.
SAARC is not a platform that can be replaced or replicated. It is built on a natural alliance, formed not just by geography, but by shared history, culture, and aspirations. The countries of South Asia are not distant partners; they are neighbours bound by centuries of interaction, migration, and exchange. From language and cuisine to festivals and philosophies, the region's common threads run deep. No external alliance or global forum can substitute the unique foundation upon which SAARC stands. Its strength lies in the fact that it is a homegrown initiative, designed by South Asians, for South Asians, to address the region distinct challenges and unlock its collective potential.
People of the region are not asking for the impossible. They want peace, opportunity, and the freedom to travel, learn, and work across borders. It's time for SAARC to be reactivated, not just for governments but for the people it was meant to serve. As the famous saying goes, 'Rivers don't stop at borders. Why must we?' When SAARC works as envisioned, it responds not with politics, but with a common vision, thriving marketplaces, and the quiet truth that the futures of South Asian people flow together.
(The writer is the Secretary General of SAARC Chamber of Commerce and Industry)
Copyright Business Recorder, 2025
