Saarc Summit nears failure on India-Pakistan spat

South Asian leaders overseeing a quarter of the world's people were struggling to agree on how to ease trade barriers in the region as India and Pakistan continued a decades-long fight over a disputed border.

Prime Minister Narendra Modi is scheduled to meet every regional leader, except Pakistan counterpart Nawaz Sharif, for a one-on-one meeting during a gathering in Nepal starting Wednesday. Leaders of the South Asian Association for Regional Cooperation (Saarc), previously held a summit in 2011.

Failure to agree on cross-border travel and electricity supply would risk derailing Modi's plan to turn the bloc into a regional force that could counter China's growing influence. Beijing's leaders have promised to invest part of a $40-billion Silk Road fund on infrastructure in South Asia.

"As of now, despite us trying very hard and several other countries keen to have concrete agreements on connectivity and electricity, there is no conclusive decision," Foreign Ministry Spokesperson Syed Akbaruddin said on Tuesday in Kathmandu. "One state has indicated they are yet to complete their internal processes." Akbaruddin reiterated Modi wasn't scheduled to meet Sharif on the trip, reflecting a deterioration in ties since the Pakistani leader travelled to New Delhi in May to attend Modi's swearing-in ceremony as prime minister. India in August scrapped talks with Pakistan after its diplomats held meetings with Kashmir separatist leaders. That was followed by the worst border firing between the countries in a decade.

"We have been shouting from the top of the roof that we are ready for meaningful dialogue," Akbaruddin said. "But emphasis is on meaningful, and in Pakistan they know very clearly what we mean." Sharif on Wednesday said he had a vision for a dispute-free South Asia, in an address to Saarc leaders. He's open to resuming talks if India makes a request, Musadaq Malik, a spokesperson, told reporters in Islamabad.

The agreements under discussion would allow free movement of vehicles among Saarc nations and make it easier for goods and people to cross borders. They would also allow for seamless railway services between countries and enable surplus electricity producers to supply nations that are in deficit.