Overview of the SAARC Economy

The South Asian Association for Regional Cooperation (SAARC), comprising the seven South Asian countries of Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka, formally came into existence in 1985 with the adoption of its Charter at the first Summit in Dhaka (7- 8 December 1985). The idea of regional cooperation was first proposed through 'a regional forum' by Bangladesh in 1980, with a view to holding periodic, regional-level consultations among countries in South Asia on matters of …

…a surprise, given the very limited degree of economic integration achieved across SAARC countries thus far. Nor is the situation likely to change dramatically in the foreseeable future. The advocacy of a common SAARC currency at present is really a case of putting the cart before the horse. We need a far freer movement of goods, services, capital, and people across borders within SAARC before the issue of currency unification can be treated as serious.