Foreign ministers from seven South Asian nations have begun a two-day meeting in Islamabad with hopes the summit will push forward the fragile India/Pakistan peace process.
The foreign ministers of Pakistan and India shook hands at the start of the meeting, which is expected to focus on boosting free trade in the region among other issues and prepare the way for a three-day summit of heads of government starting on Sunday.
Attention is firmly focused on tomorrow's arrival of Indian Prime Minister Atal Behari Vajpayee who could have one-on-one talks with Pakistani President Pervez Musharraf.
A breakthrough in the dispute over the Himalayan region of Kashmir is not likely but Mr Vajpayee's visit is seen as a sign of progress. Diplomats believe lower-level dialogue later this year could be agreed this weekend.
The leaders of India, Pakistan, Bangladesh, Bhutan, the Maldives, Nepal and Sri Lanka are expected to sign a South Asian Free Trade Agreement at the summit.
The deal will also underline the potential benefits to the region if India and Pakistan can resolve five decades of hostility over Kashmir.
A million troops massed on the India/Pakistan border in 2002 after an attack on parliament in New Delhi that India blamed on Pakistani-backed militants.