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DHAKA, Wednesday (AFP) Bangladeshi Prime Minister Khaleda Zia Tuesday called for South Asian unity to fight international terrorism.

"As globalisation has both positive and negative aspects, South Asian countries can undertake collective measures to exploit the opportunities and combat the negative impacts," she told the silver jubilee celebration of the Bangladesh Institute of International and Strategic Studies, the government's foreign policy think-tank. "The countries of the region can also combat international terrorism through ... SAARC (South Asian Association for Regional Cooperation)," she added.

"We firmly believe that it is only SAARC that can mitigate the mutual suspicion, distrust and tension in South Asia," Zia said.

"Unfortunately, the countries of the region could not make any substantial headway to generate mutual trust and confidence which has hindered SAARC's progress." SAARC has been hampered by hostile relations between India and Pakistan. The 12th SAARC summit was set to take place in Islamabad in January but Pakistan indefinitely postponed it after India failed to confirm participation.

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