The SAARC may be regarded as a Sub-Regional Forum in South Asia. It stands for the South Asian Association for Regional Cooperation. It is a voluntary association of the seven countries of South Asian namely Bangladesh, Bhutan, Indian, Maldives, Nepal, Pakistan, and Sri Lanka. Its aim is to fight against poverty, to work in cooperation on matters of mutual interest in the economic, social, technical and cultural fields. The Association embodies the hopes and aspirations of millions of people of the region to work unitedly for the improvement of the quality of their lives, and for peace progress and stability of the region. The first meeting of the SAARC was organized on two basic principles. The decision in the SAARC should be taken on the basis of unanimity and the bilateral disputed issues should not be included in the agenda. The establishment of SAARC is a historic event. This Sub-Regional Forum seeks to create a better climate of harmony, cooperation, trust and understanding among the member countries.