During the ongoing meeting of 37th SAARC Council of Ministers in this Nepalese resort city, some 200 km west from Kathmandu, the two nations laid claims to host the headquarters of the newly proposed body.
India, Pakistan, Bhutan and Bangladesh had expressed their desire to host the headquarters. During the several rounds of negotiations, Bhutan and Bangladesh withdrew their claims, leaving India and Pakistan in the race.
"What can be confirm is that other interested member states have dropped their claims over hosting the regional body," said two diplomats familiar to the development, adding that there can be breakthrough only when one of the countries backs off.
Member states had agreed to merge SAARC Disaster Management Centre, SAARC Forest Management Centre, Coastal Area Management Centre and Environment Centre into environment and disaster management centre.
After programming committee meeting of joint secretary level, foreign secretary level meeting of standing committee level could not make headway, the issue has now landed at the ministerial level meeting.