<P> Officially , the union was established in Dhaka with Kathmandu being union 's secretariat - general . The first SAARC summit was held in Dhaka on 7 -- 8 December 1985 and hosted by the President of Bangladesh Hussain Ershad . The declaration signed by King of Bhutan Jigme Singye Wangchuk , President of Pakistan Zia - ul - Haq , Prime Minister of India Rajiv Gandhi , King of Nepal Birendra Shah , President of Sri Lanka JR Jayewardene , and President of Maldives Maumoon Gayoom . </P>
who was the prime minister of india when saarc was formed
Prime Minister of India Rajiv Gandhi