No agreements will be signed in SAARC after Pak raises objection

According to reports, Pakistan blocked key proposals pitched by India to integrate energy grids and free up road and rail movement, seen as crucial for improving cross-border trade, which remains minimal between SAARC countries.

Pakistan's move comes barely hours after Modi raised concerns about lack in group's collectiveness.

"As SAARC, we have failed to move with the speed that our people expect and want. Nowhere in the world are collective efforts more urgent than in South Asia; and, nowhere else is it so modest," Modi said during his speech.

Earlier, PM modi pitched for three agreements, which had been prepared ahead of the summit, two on improving road and rail connections and one on making it easier for countries in the power-starved region to trade in electricity.

According to (Ministry of External Affairs) MEA sources, it has been learnt that because of Pakistan's objections, no agreement would be signed this time.

Analysts dealing with International relations said that, Islamabad's stubbornnes could spell doom for the group's future.

Despite a free trade pact since 2006, South Asian nations conduct only 5 per cent of their total trade with each other, and there are few transport and power links among them.

In its 30 years, the South Asian Association for Regional Cooperation (SAARC) has delivered negligible results for economic ties and development among its eight members - Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.

Analysts said, now when Modi tried to revive the SAARC economy, Pakistan created a hurdle.

Indo-Pak relation took a hit when New Delhi cancelled talks in September this year after the Pakistani envoy consulted Kashmiri separatists ahead of a scheduled dialogue between the Foreign Secretaries of both countries.

The move came  just three months after PM Modi invited his Pakistani counterpart to his swearing-in ceremony in Delhi in May.

Relations between the two neighbours have slipped further after the worst cross-border violence in Kashmir - 20 civilians were killed last month.

Modi is scheduled to hold meetings on the sidelines of the summit with all SAARC leaders except Sharif.

Earlier, Nawaz Sharif on Wednesday called for a dispute free South Asia where instead of fighting each other.

“We are committed to dispute free South Asia, need bonds of trust to solve our problems,” he said.

Pak PM’s statement is being seen as a muted reference to an ongoing standoff on talks with India.

The stand-off between the two neighbours went further after India rebuffed Islamabad's idea of upgrading China's and South Korea's status in the organisation at a meeting of SAARC foreign ministers on Tuesday.

India replied, "We need to first deepen cooperation among SAARC, before we try and move it horizontally," a remark on which several countries agreed, leaving Pakistan in red.