ISLAMABAD, Dec 16: The Saarc Summit being held in Islamabad from January 4 to 6, 2004 is expected to discuss and finalize mainly increased trade and economic cooperation agenda.

An official of the foreign office told Dawn here on Tuesday that the “atmosphere of uncertainty has now been cleared” as an understanding has been reached unofficially among the members to make the Saarc forum effective in line with other regional blocs and that the recent Confidence Building Measures (CBMs) between India and Pakistan have paved the way for meaningful economic cooperation in the region. Issues pertaining to South Asian Free Trade Area (SAFTA), he pointed out, would come up for detailed discussion, with both India and Pakistan extending all the required support in this behalf. He admitted that the existing four-year-old South Asia Preferential Trade Agreement (SAPTA) had not adequately benefited the member countries, and now it needed to be converted into SAFTA. “We hope to adopt a step-by-step approach for the regional economic integration during the forthcoming Saarc Summit as we don’t see any stumbling blocks in the way anymore,” he said, adding that concrete measures were expected to be taken to start the much wanted trade and economic cooperation among the seven members of the forum.

Both the countries, the official said, had now realised that countries other than those in the Saarc region, were thriving economically and financially and, “our countries are suffering due to India-Pakistan confrontation.”

“South Asia is becoming poorer by the day due to unending differences between India and Pakistan,” the official said hoping that the next Saarc Summit would not leave any stone unturned to make the forum effective in all respects. The Summit would also discuss cooperation to end religious extremism and militancy in the region specially in India and Pakistan.

“There is also an increased awareness on both sides that there should not be a breakdown in communication,” he said. “Our side will also try to impress upon the Indian side to stop fencing of the borders and in return Pakistan will once again make sure that there is no cross border infiltration,” the official said.

Responding to a question, he said that there existed skepticism about the suggestion to make Agra the basis of bilateral negotiations and that foremost effort will be to first remove the element of mistrust that exists between the two countries.

About the offer of single currency, the official said, it could not be predicted but then hastened to add, “this can be discussed under a step- by- step approach as Pakistan has not rejected this proposal”. Nevertheless, he said that the core issue of Jummu and Kashmir now needed to be discussed after recent CBMs made by both sides with a view to ensure lasting peace and stability in the region.