A Pakistani delegation in the United States has proposed the formation of a new economic alliance of South Asian countries, Dawn reported on Wednesday. Diplomatic observers said Islamabad's parliamentary panel made its pitch to Washington in a bid to counter India's dominance in the South Asian Association for Regional Cooperation, according to the Pakistani daily.

Pakistani Senator Mushahid Hussain Syed said, "A greater South Asia is already emerging. This includes China, Iran and neighbouring Central Asian republics." He also said that they would want India to join the alliance, as well. The senator referred to the China-Pakistan Economic Corridor as South Asia's vital link to Central Asia, and added that the strategic location of Islamabad's Gwadar Port would serve as the nearest warm water port (where the water does not freeze during winter) for China and land-locked Central Asian states.

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The Dawn report follows Islamabad's decision to postpone the Saarc summit, which had been scheduled for November 9-10, after five nations decided to skip the meet. New Delhi had cited the "unconducive environment in the prevailing circumstances" – referring to the militant attack on an Indian Army installation in Kashmir's Uri sector – as the reason for its decision. Sri Lanka, Afghanistan, Bhutan and Bangladesh followed suit, backing out of the meet and forcing the host nation to postpone the 19th Saarc meet.

However, analysts quoted by the newspaper believe that the proposal will not have too many takers. The experts speculated that only Afghanistan, being a landlocked country, may support the proposal as it stands to benefit the most from the proposed alliance.

Following the Uri attack, New Delhi had said it would "diplomatically isolate" Pakistan. India blames the country of harbouring the Jaish-e-Mohammed outfit, which it blames for the incident. Pakistan, however, dismissed the allegations as baseless.