Recognising the "serious threat" posed by terrorism to the peace and stability of South Asia, the 15th South Asian Association for Regional Cooperation Summit on Sunday in a declaration supported "strongest possible cooperation" against the menace and signed a key agreement in this regard.

Wrapping up the two-day meet, attended by Prime Minister Manmohan Singh [Images] and leaders of other seven member states, the grouping also vowed to collaborate in tackling issues like energy by developing the regional hydro potential, grid connectivity and gas pipelines, as well as food security, climate change and trade barriers as part of an endeavour to prosper as a collective unit.

The summit, which took place in the backdrop of attack on Indian embassy in Kabul and serial blasts in Bengaluru [Images] and Ahmedabad [Images], was dominated by the theme of terrorism, with leaders of all member countries recognising it as a destabilising factor which had to be guarded against.

The meet saw firming up the SAARC Convention on Mutual Legal Assistance in Criminal Matters after hard negotiations in the wake of resistance by Pakistan to the extradition clause.

The convention will provide a legal framework for greater cooperation amongst security forces of member countries to track, arrest and handover of criminals and terrorists on request from any member country.

Appreciating the convention, the leaders noted that the mechanism would provide for the "widest measures of mutual assistance in criminal matters to ensure greater sense of security within the region."

The summit emphasised the need for early ratification and implementation of the convention by the member countries.

The South Asian grouping, comprising India, Pakistan, Bangladesh, Sri Lanka [Images], Afghanistan, Nepal, Bhutan and Maldives [Images], reached the significant agreement amid serious worries about terrorism gaining in intensity and spreading its tentacles in the region.

"The heads of state or government strongly condemned all forms of terrorist violence and expressed deep concern over the serious threat posed by terrorism to the peace, stability and security of the (South Asian) region," said a declaration adopted at the end of the meet.

"They (the leaders) emphasised the need for strongest possible cooperation in the fight against terrorism and transnational organised crime amongst the relevant agencies of the member states, especially in the area of information exchange," it said.

The summit recognised the growing linkages between the phenomenon of terrorism, illegal trafficking in narcotic and psychotropic substances, illegal trafficking of persons and firearms and underscored the need for addressing the problem in a comprehensive manner.

The leaders emphasised the need for criminalising any act of provision, collection and acquisition of funds for the purpose of committing terrorist acts in line with the UN Security Council Resolution 1373.

A need for completing all legislative and other relevant measures to implement within member states the provisions of the Regional Convention on Narcotic Drugs and Psychotropic Substances was also underscored.

As part of the effort, they decided to hold the SAARC meeting of Ministers of Interior or Home Affairs later this year in Islamabad [Images].