The 17th SAARC Summit opens at Addu in Maldives this afternoon. The two-day summit is expected to move forward on liberalising trade under its Free Trade Agreement and ink new deals on regional standards, rapid response to national disasters and establishment of Seed Bank.

The Prime Minister Dr. Manmohan Singh who is leading the Indian delegation to the 8-nation grouping will address the summit today.

At the meeting between Foreign Minister S.M. Krishna and his Pakistani counterpart Hina Rabbani Khar on Wednesday, the key issue of terrorism was discussed.

Mr. Krishna said deficit between the two countries is shrinking. He asked Islamabad not to allow terrorism from its soil. He also sought speedy trial of 26/11 case.

In turn, Khar assured that her country will not allow its soil to be used for such acts.

Official sources said India also raised the issue of 26/11 trial in Pakistan and the visit of Pakistani Judicial Commission to India in connection with the Mumbai attack case.

The two leaders agreed that terrorism was a threat to both countries.

Khar said her country would not back track on the decision to confer Most Favoured Nation (MFN) status to India saying it was part of normalisation of ties between the two countries. She said, she does not see a lot of room for confusion.

She said, government gave its approval for normalisation of trade ties with India and MFN is one of the many things in it.

The theme of this year's summit is 'building bridges' to intensify regional integration and develop a South Asian identity. Implementing the provisions of the South Asian Free Trade Agreements remains central to creating a more prosperous region.

Issues of importance to individual nations like climate change which is very important for the host Maldives would also come up at the summit.

In his departure statement from Delhi on Wednesday, Dr. Manmohan Singh said that India would work to promote greater integration in South Asia. He said SAARC has established itself as a leading mechanism for regional cooperation in the region.

Dr. Singh held bilateral meetings with Bhutanese Prime Minister Jigme Thinley and the Maldivian President Mohamed Nasheed yesterday.

Dr. Singh will have meetings with the Prime Minister of Bangaldesh Sheikh Hasina and the President of Srilanka Mahinda Rajapaksa today.