Bangladesh's Yunus pushes to revive SAARC but India sees a Pakistan problem | Explained

Pakistan's Prime Minister Shehbaz Sharif (L) and Bangladesh's interim leader Muhammad Yunus - File Photo

Bangladesh’s interim advisor Mohammad Yunus is making an active pitch to revive the South Asian Association for Regional Cooperation (SAARC). Over the past year, he has discussed the issue with Pakistan’s Prime Minister Shehbaz Sharif on the sidelines of the UN General Assembly in New York, with Pakistan’s Foreign Minister Ishaq Dar in Dhaka, and most recently with US ambassador-designate to India Sergio Gor.

The eight-nation grouping has been dormant for almost a decade. Dhaka’s renewed push raises an obvious question. Why is Bangladesh so keen to bring SAARC back to life? And why is India, the region’s largest economy, in no mood to play along?

What SAARC set out to do?

SAARC was founded on December 8, 1985 when its charter was signed in Dhaka. Its objectives included promoting the welfare of the peoples of South Asia, improving quality of life, boosting economic growth, and fostering social and cultural development. It sought to increase self-reliance among South Asian nations, cultivate mutual trust and understanding, and encourage countries to work together on scientific, technical and cultural matters. SAARC also aimed to coordinate with other developing countries and with international and regional organisations with similar goals.

The original seven members were Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. Afghanistan joined in 2007. The secretariat is located in Kathmandu. SAARC leaders are supposed to meet every year but the last full summit took place in 2014 in Nepal.

The bloc effectively stalled after Pakistan-based terrorists carried out the Uri attack in 2016, killing at least 17 Indian soldiers. That year’s summit was scheduled to be held in Islamabad but India pulled out, followed by Bangladesh, Bhutan and Afghanistan, which led to its cancellation. Pakistan’s disruptive behaviour inside SAARC was already evident well before Uri, but the attack exposed how little appetite there was to sit across the table from Islamabad. Nepal continues to hold informal meetings of SAARC foreign ministers but there has been no progress on a formal revival.

Why Yunus is making a pitch

For Mohammad Yunus, SAARC is a vehicle to increase regional cooperation and connectivity. In August 2024 he called for reviving SAARC for “enhanced regional cooperation in an effort to boost economic cooperation in the South Asian region”. He said it could be a “model of relationships like the European Union”.

“We must work together for mutual benefits,” Yunus said.

Bangladesh’s own economy explains the urgency. After years of rapid growth, the country is facing high inflation, a depreciating taka, shrinking foreign exchange reserves and a widening current account deficit. In June 2025 the International Monetary Fund released $1.3 billion to Bangladesh under a $4.7 billion loan programme after tough negotiations on exchange rate reforms. Yunus, a Nobel Peace Prize-winning economist, has described the high growth numbers under Sheikh Hasina as “fake” and argued that regional cooperation could help stabilise the country.

He has also highlighted how SAARC could help manage common challenges. Bangladesh is under pressure from the influx of Rohingya refugees from Myanmar and has sought help from China and India to convince Myanmar to take them back. At a meeting with the SAARC secretary general in December, Yunus said “SAARC is a forgotten word. If you can revitalise it, this will give dividend to the people of the whole region.”

Dhaka under Yunus has simultaneously tried to warm up to Pakistan. It has floated the idea of visa-free travel, resumed maritime links after nearly five decades, lifted restrictions on Pakistani imports and even placed a defence order with Islamabad. These moves have raised eyebrows in India.

Why India is not playing along

New Delhi’s position is clear. Pakistan used its membership of SAARC to block meaningful integration and prevent key trade agreements from taking off. India recalls how Islamabad torpedoed the SAARC Motor Vehicles Agreement and other connectivity plans. Far from being a platform for cooperation, SAARC became a stage for Pakistan to obstruct regional progress.

Relations between India and Pakistan have deteriorated further since 2019 when Islamabad downgraded diplomatic ties after the abrogation of Article 370 in Jammu and Kashmir. The April 2025 Pahalgam terror attack and India’s Operation Sindoor the following month have pushed tensions to a new low. For New Delhi, going back to SAARC means giving Pakistan another veto over the region’s future.

Instead, India has shifted focus to alternative platforms such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). This grouping excludes Pakistan and has made tangible progress on connectivity, trade and security.

Some foreign policy experts argue that India should not completely ignore SAARC, given that it still symbolises South Asian cooperation. Yet Bangladesh’s latest pitch is unlikely to cut much ice in New Delhi unless Islamabad changes its behaviour – something that looks improbable given its record of sponsoring terror attacks and blocking regional integration.

For now, Yunus may continue to call for a revival of SAARC but India seems determined not to walk back into a forum where Pakistan once again holds the region’s growth hostage.