SAARC summit closes

"This summit marks a watershed in enhancing South Asian regional cooperation," Bangladeshi PM Khaleda Zia declared in her closing address.

A historic South Asian summit ended on Tuesday with leaders of the seven nations hailing the three-day meeting as a "watershed" for the region, thanks to breakthrough talks between rivals India and Pakistan and a free trade pact.

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"This summit marks a watershed in enhancing South Asian regional cooperation," Bangladeshi Prime Mininster Khaleda Zia declared in her closing address at Islamabad's Jinnah Convention Center.

Host Pakistan's prime minister, Zafarullah Jamali, declared the 12th South Asian Association for Regional Cooperation (SAARC) summit closed.