Pakistan's limited tariff concessions to India to only one item of the positive list comprising 773 items led the two countries to accuse each other of violating the SAFTA framework agreement. But one major step towards implementation of SAFTA has come by way of the SAARC member states agreeing to remove para-tariff and non-tariff barriers.

This set the scene for taking other positive measures to further the frequency and volume of regional cooperation. One of the major steps taken is the green light given by the council of ministers towards formation of a common SAARC development fund. The Indian proposals for setting up South Asian University, SAARC museum of textiles and handicrafts and tele-medicine centre have been welcomed for adoption through a programming committee.

On the broader issue of economic and financial integration in SAARC, the governors of the central banks of the member states are to put their heads together for devising suitable mechanisms across South Asia. It's good augury that the council of foreign ministers has decided to observe 2008 as the SAARC Media Year with the objective of implementing SAARC Media Action Plan in consultation with SAFMA. It is highly imperative that the visa regime be relaxed to enhance interaction in various spheres.

It is a testament to the growing prestige and magnetism of SAARC that the USA, South Korea and the EU have sought and received the observer status in SAARC. Earlier, China and Japan had been granted the same status. Besides, importantly, Afghanistan has already been embraced as the 8th member of SAARC.