There is a ‘feel good' factor about the Saarc summit as well — in marked contrast to what the scene was during past such meetings. Ever since the inception of the South Asian grouping, it has been held hostage to India-Pakistan differences. Now, for the first time, the improving relations between New Delhi and Islamabad have given rise to the hope that the Saarc may at last produce a positive result. Evidence of this new mood is available from the agreements on free trade and terrorism. These are major steps forward, especially on trade, which have the potential of changing the economic profile of the region. Besides, the reduction of the earlier tension between India and Pakistan will mean that all the deals, in business or in other fields, will be conducted in an atmosphere of normality where no country will try its tricks of one-upmanship as before.

That hangovers of the past still remain is evident from the Pakistani reluctance to accept India's proposals on a South Asian economic union on the lines of the European Union and the introduction of a single currency. Not unexpectedly, Pakistan has let it be known that it believes that these measures are tantamount to moving too fast too soon. Instead, it wants the focus to return to ‘conflict resolution', which, in Islamabad's lexicon, means dealing with the Kashmir problem first. Pakistan has always suspected that the Indian moves to improve relations on various fronts — through people-to-people contacts, closer economic and cultural ties, etc. — are intended to divert attention from Kashmir. Once there is a dramatic improvement in India-Pakistan relations, Kashmir will be relegated to the back burner, in Pakistan's view.

India's stand is the opposite. It believes that improved ties will facilitate the task of dealing with Kashmir. India doesn't believe that continuing ill feelings are the best way to tackle the problem. However, if Saarc fulfils its initial expectations by enhancing cooperation among the member countries, the outlook for the future will be bright. The emphasis will shift from simmering tension — and not between India and Pakistan alone — and acts of terrorism to constructive endeavour. That will be the best news the region has had in many years.