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HomeWorldIn talks with Pakistan, Yunus pushes SAARC revival: Why the bloc remains frozen since 2014 and why it matters for India

In talks with Pakistan, Yunus pushes SAARC revival: Why the bloc remains frozen since 2014 and why it matters for India

Even with the roadblocks, India cannot afford to ignore SAARC. At a time when global trade wars and power rivalries are reshaping the world, South Asia’s collective strength could be a game changer.

August 25, 2025 / 21:01 IST
File Photo - The then Afghan President Ashraf Ghani (L), then Bangladesh Prime Minister Sheikh Hasina (2L), then Bhutanese Prime Minister Tshering Tobgay (3L), Indian Prime Minister Narendra Modi (4L), the then Prime Minister of Nepal Sushil Koirala (4R), the then Maldives President Abdulla Yameen (3R), the then Pakistan's Prime Minister Nawaz Sharif (2R) and the then President of Sri Lanka Mahinda Rajapaksa posing for a photograph during the closing session of the 18th SAARC summit at City Hall in the Nepalese capital Kathmandu on November 27, 2014.

During his meeting with Pakistan’s Foreign Minister Ishaq Dar on Sunday, Bangladesh’s interim chief Muhammad Yunus once again pushed for stronger regional cooperation. At the heart of his message was the revival of SAARC, the South Asian Association for Regional Cooperation, which has been lying dormant for almost a decade.

This was not Yunus’ first call. Soon after taking office last year, he raised the idea with Pakistan’s Prime Minister Shehbaz Sharif on the sidelines of the UN General Assembly in New York. For him, restarting SAARC is central to building a more connected South Asia. But the grouping has not held a summit since 2014, when leaders last met in Kathmandu.

Why SAARC stalled

SAARC was founded in 1985 with the idea that South Asian countries could pool resources and work together on issues like trade, connectivity, health, and disaster management. Its members are Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka.

But despite its potential, the grouping has struggled for decades. One big reason is India-Pakistan tensions.

In 2016, after the Uri terror attack in Jammu and Kashmir, India pulled out of the SAARC summit scheduled in Islamabad. Other countries like Bangladesh, Bhutan, and Afghanistan followed suit, leaving the meeting cancelled. Since then, no new summit has taken place.

Even when SAARC was active, Pakistan often acted as a spoiler. It blocked key trade agreements and refused to sign the SAARC Motor Vehicles Agreement, which would have allowed smooth cross-border road connectivity. This made the grouping less effective and pushed other countries to look at alternative platforms such as BIMSTEC (which links South Asia with Southeast Asia).

Why revival matters now

Today, the world is entering a turbulent economic and political phase. For India, this turbulence has become very real. The US, under Donald Trump, has imposed high tariffs on Indian imports as punishment for New Delhi’s continued purchase of Russian oil. This comes at a time when India is trying to balance ties with the West, manage relations with Russia, and compete with China’s growing influence in the region.

In this scenario, having a functioning SAARC could give India several advantages:

A regional buffer against global pressures: Closer economic and trade ties with South Asian neighbours can help India cushion the impact of external shocks like US tariffs. If India is less dependent on Western markets, it gains more room to manoeuvre in global politics.

Countering China’s rise in South Asia: Beijing has been steadily increasing its footprint in Pakistan, Nepal, Sri Lanka, and now even Bangladesh. A revived SAARC led by India could reduce this dependence on China and give smaller neighbours more balanced options.

Regional stability: Many of South Asia’s problems, from energy shortages to climate disasters, are shared. Joint efforts under SAARC could reduce friction and foster stability. For India, this means fewer security headaches along its borders.

Boost to India’s leadership role: India has already shown how regional cooperation can work, with Prime Minister Modi launching a SAARC Covid-19 fund in 2020. If SAARC is revived, India will naturally be at the centre, strengthening its image as a regional leader.

Roadblocks

Despite these opportunities, big challenges remain. Pakistan’s obstructionist approach has not changed, and its veto power within SAARC has often paralysed decision-making. Unless there is some shift in Pakistan’s attitude, the chances of meaningful progress will remain slim.

There is also scepticism among other members who see more promise in alternatives like BIMSTEC, where Pakistan is not a member. For many, this grouping is easier to work with.

Why India should still care

Even with the roadblocks, India cannot afford to ignore SAARC. At a time when global trade wars and power rivalries are reshaping the world, South Asia’s collective strength could be a game changer. For India, reviving SAARC is not just about diplomacy with neighbours but also about securing economic stability and countering China’s influence.

The challenge is how to move past Pakistan’s stonewalling. One possibility is to push for functional cooperation in areas like health, disaster relief, and education, where political disagreements are less intense. Step by step, this could breathe life back into SAARC.

Moneycontrol World Desk
first published: Aug 25, 2025 09:01 pm

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