South Asia has carried dubious distinction of being the only region in world without even a rudimentary regional organization1I for too long. This may partly be attributable to internal contradiction of region-unity vs. diversity. If South Asia is perceived as one homogeneous colonial unit of British Raj, then absence of a regional framework for cooperative interaction is surprising; but digging a little deeper, one uncovers heterogeneity of South Asia and is even more surprised at progress region has actually made toward institutionalizing regional cooperation since initiative was taken by late President Ziaur Rahman of Bangladesh in 1980. That South Asia is among last to attempt politics, or more precisely economics, of cooperation is not without logic. Whatever happens or fails to happen in context of South Asian cooperation is inextricably woven into matrix of Indo-Pakistani relations. Since independence in 1947, politics of India and Pakistan can unhesitatingly be characterized as politics of conflict, for which absence of any cooperative machinery was more welcome than its presence.