The historic documents representing major successes of the summit of seven Saarc (South Asian Association for Regional Cooperation) countries were signed by foreign ministers in the presence of their heads of state and government, including Bangladesh Prime Minister Khaleda Zia.

The leaders also adopted the Islamabad Declaration for the Saarc summit and a protocol on elimination of poverty and signed a social charter.

Thanking the foreign ministers and officials, Pakistan Prime Minister and Saarc Chairperson Mir Zafarullah Khan Jamali said Safta (South Asian Free Trade Area) to be effective from January 1, 2006 was a historic milestone towards greater economic cooperation among Saarc countries -- Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.

"These are watershed developments which will go a long way in promoting fruitful economic cooperation," he said, praising the summit for "reinvigorating regional cooperation".

The Islamabad Declaration "contains the roadmap for regional cooperation under Saarc," Jamali said.

"This is a future-oriented declaration of historic significance."

The social charter on raising living standards and human rights was "a collective resolution on the need for economic and social cohesion," Jamali said.

"It proclaims our commitment to collectively seek a better future for the peoples of our region."

The poverty alleviation plan "provides a complete micro framework for national and regional efforts to address all issues relating to poverty," the Pakistani premier said.

Adding a clause on sealing terrorist funding channels to a 1987 anti-terror agreement was "another landmark in eliminating the menace of terrorism from our region," Jamali said.

Pointing out that peace was a prerequisite for socioeconomic development of the region, Jamali said Saarc was committed to fostering good neighbourly relations and meaningful cooperation.

"We believe in close cooperation, coordination and consultation," Jamali said, adding, the member countries were committed to carry forward the Saarc process.

On behalf of the Saarc member states, Khaleda said the summit has been a "key watershed" in enhancing cooperation among the nations of South Asia.

She said the conference helped in advancing towards the realisation of Safta, added a new thrust to poverty reduction programmes and provided a roadmap for concrete action in this direction.

Following her speech, Jamali, as the chairperson of the 12th summit, declared the conference closed.

Islamabad Declaration

Salient points

1. Terrorism one of the most serious regional threats
2. Security concerns of small states acknowledged
3. The year 2004 as Saarc Awareness Year
4. Creation of Saarc health monitoring centre called for
5. Strategy for alleviating poverty approved

At the 12th Saarc summit, the heads of member states signed the Islamabad Declaration, vowing to make South Asia a peaceful and stable region where each nation is at peace with itself and with its neighbours.

The declaration also condemns terrorist violence in all its forms and notes that the people of South Asia face a serious threat of terrorism.

It describes terrorism as one of the most serious threats to international peace and security and binds the member states to fully implement the relevant international conventions to which all Saarc members are a party.

The declaration comprising 42 articles identifies 14 areas of mutual cooperation including economic, poverty alleviation, science and technology, social, cultural, environmental, combating terrorism, information and communication, inter-regional cooperation, enhancing political cooperation and security of small states.

Saarc leaders would promote good neighbourly ties based on sovereign equality, territorial integrity and national independence, non-intervention, non-interference and peaceful settlement of disputes.

The declaration recognises the importance of informal political consultations in promoting mutual understanding and reinforcing confidence-building process among the member states.

It addresses the small states' security concerns arising from their particular vulnerabilities and calls for addressing them under the UN Charter and rules of international law related to sovereign rights and territorial integrity of all states.

It urges maintaining this momentum and moving towards broadening economic cooperation to ensure equitable distribution of the benefits of trade and catering to the special need of the small and the least developed member states by providing them special and differential treatment.

It recommends a study to create a South Asian Energy Cooperation including the concept of an energy ring.

The declaration underlines the creation of a suitable political and economic environment that would help create a South Asian Economic Union. It calls for strengthening transportation, transit and communication links across the region for accelerated and balanced economic growth.

The declaration calls for improving health conditions for the people of the region and urges the provision of healthcare, prevention and treatment of HIV/AIDS, tuberculosis and other communicable diseases as a priority. The declaration announces 2004 as Saarc Awareness Year.

It calls for setting up a Saarc Health Surveillance Centre and a Rapid Development Health Response System to deal with the re-emerging diseases and to establish a network between various institutions dealing with malaria and other vector-borne diseases.

The declaration approves the Plan of Action on Poverty Alleviation prepared by the meeting of the finance and planning ministers in Islamabad in 2002. The declaration recommends the establishment of a regional food bank.

It asks the Saarc Secretariat to periodically update and submit regional profiles and submit to the next Saarc summit a comprehensive and realistic blueprint of development goals for the next five years in poverty alleviation, education, health and protecting the environment.