Pakistan is exploring the possibility of creating a greater South Asian economic alliance to counter India's controlling hold on the eight-member South Asian Association for Regional Cooperation (Saarc), diplomatic observers said.


A parliamentary delegation from Pakistan, which is now in New York, pitched this idea during its five-day visit to Washington last week, Dawn online reported on Wednesday.


"A greater South Asia is already emerging," said senator Mushahid Hussain Syed, in one of his interactions with the media. "This greater South Asia includes China, Iran and the neighbouring Central Asian republics."


He described the China-Pakistan Economic Corridor as the key economic route linking South Asia with Central Asia. The Gwadar port, he said, would be the nearest warm water port, not only for China but also for the land-locked Central Asian states.


"We want India to join this arrangement as well," said Hussain, an offer Indians are unlikely to accept as they are comfortable with the advantage that Saarc provides them.


Last month, India used its influence in Saarc to isolate Pakistan when it announced that it would not attend the regional group's 19th summit, scheduled in Islamabad on November 15 and 16. India cited Pakistan's involvement in the September 18 terrorist attack at an Army camp in Uri town of Kashmir, in which 19 soldiers died, as the reason for its decision to boycott the summit. India has blamed Pakistan for the attack, a claim which Islamabad has denied.


Other Saarc nations - Afghanistan, Bangladesh, Bhutan and Sri Lanka - joined India to boycott the meeting. The boycott has led to an indefinite postponement of the summit and exposed Pakistan's isolation within the region.


"Apparently, the showdown forced Pakistan to conclude that in its present shape, Saarc will always be dominated by India. That's why they are now talking about a greater South Asia," said a senior diplomat, confirming reports that Pakistan is actively seeking a new regional arrangement.


"Pakistan hopes that this new arrangement will give it more room to manoeuvre when India tries to force a decision on it," said another diplomat.


Diplomatic observers in Washington said the proposed arrangement also suits China as it is worried about India's rapidly growing influence in the region. They argued that China can play an important role in persuading Central Asian republics and Iran to join the new arrangement. But, according to the observers, Saarc members will have little interest in supporting the idea.