The council granted Saarc observer status to the USA, South Korea and the European Union. They will be invited to participate in the 14th summit to be held in India on April 3-4 next year.

Earlier, China and Japan were made observers of the South Asian forum that adopted Afghanistan as its 8th member.

Foreign Minister M Morshed Khan who chaired the 27th session of the Council of Ministers that concluded here yesterday told a press briefing that India and Pakistan raised different issues relating to the implementation of Safta.

The council, comprising the foreign ministers of Saarc countries, discussed the issues and eventually agreed that the regular meeting of the Safta Ministerial Council of Commerce Ministers would consider the issues and report to the council.

Morshed said the meeting considered removal of para-tariff and non-tariff measures, harmonisation of standards, testing quality and measurements across the region. The Saarc commerce ministers will further discuss the matter and report to the council.

On economic integration in South Asia, the council advised the Saarc finance, comprising the governors of the central banks of the member states, to continue its work to further expedite economic and financial integration in Saarc.

On easing visa regime among the Saarc countries, he said customs officials of the member states will hold a meeting to discuss the matter and work it out.

The council welcomed the Indian proposals for setting up South Asian university, Saarc museum of textile and handicrafts and tele-medicine centre. The Programming Committee will further discuss these proposals.

The Saarc foreign ministers approved the Regional Poverty Profile 2005 to eradicate poverty in the region.

On the Vision Document for Saarc's third decade tabled by Bangladesh at the 13th Summit, the Council of Ministers asked the Saarc Standing Committee to finalise it for consideration of the council so that it could be placed for approval at the 14th summit.

The Council of Ministers decided to observe 2008 as the Saarc Media Year. During the year, there will be increased attention to fully implement Saarc Media Action Plan in consultation with Safma.

The council also adopted the modalities for admission of Afghanistan and guidelines for observers. It also approved a $ 1.9m budget for the Saarc Secretariat.

About observers, he said the door of Saarc is open for observers, but there should be a limit as "We can't take unlimited number of observers."

Morshed said the Council of Ministers has successfully concluded its work because of spirit of cooperation that prevailed throughout the meeting.