US President Donald Trump's 90-day pause on reciprocal tariffs brought unexpected relief to South Asian countries. While Afghanistan, Bhutan, Nepal, and Maldives faced only a 10% tariff, others like Sri Lanka, Bangladesh, Pakistan, and India faced higher tariffs initially. India, due to its lower trade deficit with the US and preemptive tariff reductions, was in the most advantageous position.
Pakistan held a global forum to attract investment in its untapped mineral reserves, estimated at $8 trillion. The event aimed to improve mining sector regulation and reduce dependence on international organizations like the IMF. This push is likely influenced by the Trump administration's interest in mineral resources, despite security challenges in mineral-rich areas.
India passed a controversial bill granting the government more control over Muslim-owned properties (waqfs). Supporters claim it modernizes governance, while critics see it as an attempt to marginalize the Muslim community. This adds to tensions surrounding Hindu nationalist policies.
Indian Prime Minister Modi met with Bangladesh's interim leader Muhammad Yunus, marking a high-level engagement despite bilateral tensions. While conciliatory, concerns were raised over religious minorities in Bangladesh and Hasina's presence in India, showcasing a complex relationship.
The Modi-Yunus meeting took place at a BIMSTEC summit. The rise of BIMSTEC, which excludes Pakistan and Afghanistan but includes Myanmar and Thailand, highlights a shift towards subregional cooperation in South Asia, partially due to the paralysis of SAARC because of the India-Pakistan rivalry.