The relevance of the SAARC grouping has come under scrutiny due to lack of any substantial increase in economic exchanges. On 26 November 2014, during a speech at the 18th SAARC summit in Nepal, Modi emphasised that trade, investment and connectivity are the key areas of cooperation for SAARC countries. However, challenges in signing connectivity agreements re-emerged at the summit due to the usual hostility between India and Pakistan. Neelam Deo, director at Gateway House, comments on the outcomes of the summit.
Statement:
“Connectivity is vital for SAARC countries to increase economic exchanges and grow to their potential. The key connectivity agreements proposed at the SAARC summit included the Framework Agreement for Energy Cooperation, the Motor Vehicle Agreement for Regulation of Passenger and Cargo Vehicular Traffic, and the Regional Agreement on Railways. The three agreements, if concluded, could have invigorated economic interaction between SAARC countries. However, domestic problems in Pakistan have weakened Nawaz Sharif due to which he could only sign on to one of the three agreements.
The outcome of the SAARC summit is disappointing – only the Framework Agreement for Energy Cooperation (electricity) was signed. However, if properly implemented, the agreement could enhance energy trade in South Asia, which is highly dependent on oil imports. There is still hope that the other two agreements may be completed within the next three months, giving Pakistan time to complete its internal processes.
Greater political understanding among SAARC countries is needed to address problems, such as terrorism, which affect the region.”
For more information or interview requests, please contact Reetika Joshi at joshi.reetika@gatewayhouse.in.