SAARC is slowly emerging from the slumbers, after caught in between India and Pakistan since inception, with new initiatives like SAARC university. Consider the following statements about SAARC and choose the correct one/s.

1. The SAARC is a major regional initiative by South Asian states to evolve cooperation through multilateral means.

2. SAARC members signed the south Asian free trade agreement which promised the formation of a trade zone for whole zone of South Asia.