Saarc countries ink electricity-sharing pact

Railways and motor vehicle agreements delayed; Nawaz-Modi handshake salvages summit;
China pledges increased engagement with regional body

Friday, November 28, 2014

From Print Edition

47 1 2 0

KATHMANDU: South Asian leaders signed an agreement to improve the cross-border

energy trade in the power-starved region on Thursday, as the Saarc summit overshadowed
by Pakistan-India rivalry ended with little progress towards regional integration.

Meanwhile, after weeks of speculation and tension, the leaders of Pakistan and India finally
shook hands, breathing a fresh lease of life into the eight-member South Asian Association for
Regional Cooperation (Saarc).

Prime Minister Nawaz Sharif and Prime Minister Narendra Modi created a stir as the concluding
session of the 18th Saarc summit finally saw a warm handshake between the two. They shook
and held each others hand for nearly 30 seconds. They also smiled and exchanged pleasantries.

Kathmandus City Hall broke into loud applause as the two leaders warmly shook hands, putting
an end to the stiff statements by their respective foreign offices, who saw no structured or
formal meeting between the two.

A 31-point document titled the Kathmandu Declaration was issued at the end of the summit. It
touches on a wide range of issues including counterterrorism, trade and investment promotion,
infrastructure development, youth employment, telecommunication tariff cuts, regional
connectivity, social security for elderly people, literacy, and Saarcs transformation into the
South Asian Economic Union by 2030.

In a speech at the closing ceremony, Nepals Prime Minister Sushil Koirala reiterated his call for
stronger relations at the closing ceremony of the 18th summit, insisting his country will continue
to work hard to implement a crucial liberalization mechanism to increase engagement.

Convergence of opinion is needed to provide tangible results. Nepal will put its best efforts to
get decisions at this summit sincerely implemented. Im confident we will be able to bring
tangible results to all members, he said.

Saarc, which was formed nearly three decades ago, has come under fire for failing to promote
cooperation between members - India, Pakistan, Bangladesh, Sri Lanka, Nepal, the Maldives,
Bhutan and Afghanistan.

Our achievements stand short of expectations, Koirala admitted. This was in evidence at the
summit as only one of the three agreements expected to be signed was approved.The leaders
signed the energy cooperation agreement while those on the railways and motor vehicles were
delayed.

Following the signing of the energy cooperation framework, Koirala pledged to gather all
transport ministers of member states within three months to thrash out the Saarc Railway
Agreement and Motor Vehicle Agreement, but there is no timeline in place for implementation.

The much-anticipated meeting between Indian Prime Minister Narendra Modi and his Pakistani
counterpart Nawaz Sharif failed to take place.

According to Nepali Foreign Minister Mahendra Bahadur Pandey, Modi and Sharif met and
shook hands at the retreat.Koirala said the achievements of Saarc had fallen short, and urged
fellow leaders to summon the political will to translate their words into action.

Despite several transformative potentials in the region, our achievement stands short of
expectations, said Sushil Koirala. We alone are responsible for shortcomings in the Saarc
process.

Koirala said there was no justification for such deprivation in a region rich in natural
resources.The leaders of the eight Saarc countries had expressed frustration with the slow pace of
progress towards greater regional integration since the group first launched nearly three decades
ago.

Indian Prime Minister Narendra Modi made pointed references in his summit speech on
Wednesday to the deadly 2008 attacks in Mumbai, which India blamed on the Pakistani
militants.

He also held formal talks on the two-day summits sidelines with every Saarc leader except
Pakistani Prime Minister Nawaz Sharif. Both sides said it was up to the other to request a
meeting.

Prime Ministers Special Assistant Tariq Fatemi told media in Kathmandu, It was a spontaneous
reaching out and shaking of hands. He said there was a great expectation from the Saarc and the
event concluded on a happy note.

We go back from Saarc very satisfied, he said. When asked would this handshake make any
difference to the regional body, Fatemi said Saarc members desired that Pakistan and Indias
bilateral relations become good so as to strengthen the regional grouping.

He recalled that the world capitals had noted with concern the cancellation of foreign secretaries
level talks by India.Prime Minister Sharif had meetings with all other leaders except PM Modi,
as Pakistan believes that the onus of a formal dialogue lies with India, he said, adding, There
was no formal meeting.

Asked about the future after handshake, Fatemi said Pakistans position remained the same and
Pakistan-India relations could move forward through the process of sustained dialogue.There is
will and desire and the two could not move forward without pursuing it sincerely.

To a question, Tariq Fatemi said: I am not in a position to comment on what happened at the
retreat. Body language of both leaders was good, smiling and looked satisfied.Our principled
position has been maintained with dignity and honour. We did not either succumb to pressure,
he added.

Tariq Fatemi said, On persuasion by any side, we upheld Pakistans interest.Fatemi said
overall Saarc had taken a small step forward with an agreement on energy cooperation signed
unanimously. He said the other two agreements on motor vehicles and railways could not be
signed on technical grounds as it were not discussed at senior officials level.

He said the ministries of commerce and transportation would meet in three months to remove
any lacuna.Tariq Fatemi said the Saarc Secretariat had initially proposed three agreements;
however, only one could be agreed upon as Pakistan had certain reservations about agreements
on Motor Vehicles Transportation and Railways.

We would suggest certain amendments so that they do not impinge upon the interest of
Pakistan, he added. Tariq Fatemi said Saarc members appreciated the vision of Prime Minister
Sharif for regional connectivity and stronger cooperation.Special Assistant to Prime Minister
Irfan Siddiqui told media that the handshake of prime ministers Sharif and Modi received a big
applause.

It was as if the Saarc was waiting for this handshake. Siddiqui said as the next step, India
should fulfill its prior understanding with Pakistan and revive it.A senior Chinese official said
China will continue to deepen ties with South Asian countries and outlined extensive policies to
engage on trade liberalization and development.

Greater engagement will take place in the coming years, said Chinas Deputy Foreign Minister
Liu Zhenmin, head of a delegation here attending the 18th summit of the Saarc, to which China
is an observers.

China has put forward a series of initiatives, increasing trade between South Asia and China to
US $150 billion and investment to $30 billion in the next five years, he said at the gathering in
Kathmandu.

We are offering South Asian countries US $30 billion in construction of roads, offering 10,000
scholarships, 5, 000 training opportunities and exchange programmes for 5,000 youths and
sending off 5,000 Chinese language teachers in South Asian countries in the next 5 years, he
said.