▁founded ▁in ▁D h aka ▁on ▁ 8 ▁December ▁ 1 9 8 5 . ▁Its ▁secret ariat ▁is ▁based ▁in ▁Kath m and u , ▁Nep al . ▁The ▁organization ▁prom otes ▁development ▁of ▁economic ▁and ▁regional ▁integration . ▁It ▁launched ▁the ▁South ▁Asian ▁Free ▁Trade ▁Area ▁in ▁ 2 0 0 6 . ▁SA AR C ▁maintain s ▁permanent ▁diplom atic ▁relations ▁at ▁the ▁United ▁Nations ▁as ▁an ▁observer ▁and ▁has ▁developed ▁links ▁with ▁mult il ater al ▁entities , ▁including ▁the ▁European ▁Union . ▁ ▁Historical ▁background ▁ ▁The ▁idea ▁of ▁co - operation ▁among ▁South ▁Asian ▁Count ries ▁was ▁discussed ▁in ▁three ▁con ferences : ▁the ▁Asian ▁Rel ations ▁Conference ▁held ▁in ▁New ▁Del hi ▁on ▁April ▁ 1 9 4 7 ; ▁the ▁B agu io ▁Conference ▁in ▁the ▁Philippines ▁on ▁May ▁ 1 9 5 0 ; ▁and ▁the ▁Col om bo ▁Pow ers ▁Conference ▁held ▁in ▁Sri ▁L anka ▁in ▁April ▁ 1 9 5 4 . ▁ ▁In ▁the ▁ending ▁years ▁of ▁the ▁ 1 9 7 0 s , ▁the ▁seven ▁inner ▁South ▁Asian ▁nations ▁that ▁included ▁Bang l adesh , ▁Bh ut an , ▁India , ▁M ald ives , ▁Nep al , ▁Pakistan , ▁and ▁Sri ▁L anka ▁agreed ▁upon ▁the ▁creation ▁of ▁a ▁trade ▁b loc ▁and ▁to ▁provide ▁a ▁platform ▁for ▁the ▁people ▁of ▁South ▁Asia ▁to ▁work ▁together ▁in ▁a ▁spirit ▁of ▁friendship , ▁trust , ▁and ▁understanding . ▁President ▁Z ia ur ▁Rah man ▁later ▁addressed ▁official ▁letters