The fact that the Summit took place despite two attempts on the life of the President of Pakistan underlined the importance of the SAARC process. It was good that this window of opportunity was accessed to. It will make South Asian efforts that much more relevant in the international arena. It will also denote the seriousness with which we view the resolution of our outstanding problems.

The Islamabad Declaration and other reports coming out after the conclusion of the Summit Meeting indicate that all parties in principle agree on certain concerns raised by them during their respective interventions.

In this context one needs to recall some of the salient points that were stressed upon by these South Asian leaders.

Indian Prime Minister Vajpayee significantly called for an end to "mutual suspicions and rivalries" that have "haunted" the South Asian region. He also suggested the need for "greater sensitivity" among the SAARC nations to the security concerns of each other. This was further emphasized by "history can remind us, guide us or warn us. It should not shackle us. We have to look forward now with a collective approach in mind."

Similarly, Pakistan's Prime Minister Jamali underscored that political disputes should be addressed in a just and realistic manner, failing which ideas like a common economic and monetary union would remain a distant dream.

President Kumaratunga of Sri Lanka hailed the peace overtures between India and Pakistan and expressed the belief that this evolving situation would not only "boost chances of saving South Asia from global marginalization" but would also "give rise to confidence."

President Maumoon Abdul Gayoom of Maldives made a strong plea for security cooperation among the SAARC countries and asked them "to seek observer status in the United Nations as a regional grouping". In this context he reminded others that it would not be possible to have regional security cooperation unless it is viewed as being of common interest rather than a contentious issue. Very relevant indeed.

Nepalese Prime Minister Surya Bahadur Thapa mentioned that "improvement of relations between India and Pakistan would lead to relaxation of tension in the region and provide a new and meaningful impetus to cooperation among SAARC countries". He also stressed on the need for member states to act "resolutely" in their efforts to combat the menace of terrorism.

Bhutanese Prime Minister Thinley spoke of "winds of rapprochement" blowing across the region. In this regard he drew the attention of the other leaders to the recent joint operations carried out in Bhutan against the ULFA and the other terrorist groups.

Bangladesh Prime Minister Khaleda Zia in addition to pointing out the harsh reality and inertia that SAARC has been facing in recent years also focussed on poverty reduction in South Asia hinging around social mobilisation, decentralisation and human resource development. In this context, she also called for an exclusive Regional Centre for Information Technology, establishing a regional energy grid and use of alternative energy sources. She also urged the early adoption of an interregional investment agreement to generate employment, reduction of trade imbalance and promotion of South Asia as a common investment area. The other important element was her suggestion that there should be increased people-to-people contact, specially strong cultural and sports-exchange programmes. It was good that this was reiterated because Sheikh Hasina, our former Prime Minister also emphasized this factor as a confidence building measure for South Asia. Such elements of continuity in foreign policy are required.

A new beginning has been made this week in Islamabad. It is already being referred to as a "watershed" for future South Asian cooperation. The "future oriented" Islamabad Declaration has been described by the Pakistani Prime Minister as containing "the roadmap for regional cooperation under SAARC". It probably does. However, one has to be careful that this exuberance does not evaporate due to internal domestic compulsions.

The leaders have jointly vowed to make South Asia a peaceful and stable region where 'each nation is at peace with itself and with its neighbours.' This may be construed as significant given the constant charges of cross-border terrorism and pre-emptive display of aggression potential. The decision, in this context, of resuming talks next month between India and Pakistan at the level of Officials is a movement forward. Such composite dialogue can only ease tension all around and act as a confidence building measure.

Bangladesh has always believed in such a process and the present Government has very correctly welcomed this development. This approach is consistent with that of the previous Government. It may be recalled that Sheikh Hasina, during a sensitive period, acted most maturely by taking the initiative of visiting New Delhi and Islamabad and urging the two leaderships (after each country's respective nuclear explosions) to step back from the brink, restrain themselves and resolve problems through dialogue.

It is equally important that the Declaration consisting of 42 Articles, recognised the importance of informal political consultations in promoting mutual understanding and reinforcing the confidence building process among member states. This will address the security concerns of small South Asian states arising from their particular vulnerabilities. It will also enable them to address such anxieties within the perspective of the UN Charter and rules of international law related to sovereign rights and territorial integrity of all states.

SAFTA should also ensure the movement towards broadening of economic cooperation to ensure equitable distribution of the benefits of trade and catering to the special need of the small and the least developed member states by providing them special and differential treatment. SAFTA will take effect from January 1, 2006 in all SAARC countries simultaneously, but the implementation of the new tariff regime judiciously, will offer three sets of deadlines according to member states' varying economic prowess.

Pakistan and India are expected to complete SAFTA implementation by the year 2009 whereas Sri Lanka will take another year (2010) to bring its tariff down to five and then to zero per cent. Bangladesh, Bhutan, the Maldives and Nepal, with weaker economies, have received concessions to avail of a longer deadline that would end by 2013. In the meantime, each member state would be allowed to maintain a sensitive list of products on which tariff would not be reduced. Such a measure is not unreasonable given the genuine apprehension that Indian cheap goods may overwhelm the markets of smaller countries in the South Asian region and thereby ruin their domestic industries.

It would however be worthwhile for the South Asian leadership to understand that such a free trade initiative has also to be seen as being fair. As in Europe, in the long run, the effort should eventually move towards complementarities of economies where industrial products through joint investment could emerge from several countries of the region. For example, parts of a car or any other machine may in due course be manufactured in different countries of the region. Such an activity will generate cross-border investment rather than cross-border terrorism. It will provide employment and remove suspicion. It will bring us together by generating stakes that cannot be overlooked. North America is a case in point.

The movement forward in SAARC has been slow because of several political factors. Nevertheless, the maturity displayed this month has given birth to hope. We can and should grow confidence in the process. What is important is that this momentum is not lost.

Necessary studies will have to be carried out by the SAARC Secretariat to identify the requisite follow-up mechanisms. It will be difficult but this has to be done. The Secretariat will probably need to be strengthened with greater resources. Given the proper political will, this should not be impossible.

Muhammad Zamir is a former Secretary and Ambassador.