The South Asian Association for Regional Cooperation summit in Islamabad next month may adopt a new protocol on terrorism with a focus on curbing funding for such activities, according to officials involved in the preparations of the summit.

Negotiations are underway between the SAARC secretariat and member countries on the suggested additional protocol on terrorism, which India is backing to the hilt.

According to officials, the primary focus of the additional protocol is on checking financing of terrorism.

"Though we had adopted the SAARC Regional Conventional on Suppression of Terrorism at Kathmandu, there is a need for more effective and credible steps to strengthen our cooperation in the fight against terrorism," said a senior official.

He pointed out that in the light of 'disagreements' within the region over the fight against terrorism it would be in checking financial transactions that SAARC might find success.

The additional protocol would also help the SAARC to 'respond better' to United Nations resolution 1373, the official said.

At the Kathmandu summit heads of SAARC countries had reiterated their support to the UN resolution of September 28, 2001 and said they would suppress terrorism in all its 'forms and manifestations'.

"The commitment is yet to take any concrete shape," points out an Indian official. He said India would try and get the SAARC summit in Islamabad to put its focus mainly on two fronts -- trade and terrorism.

Besides other issues that India would push are those concerning poverty, trafficking of people and adoption of SAARC social charter.

"Terrorism is an important threat to the region's efforts to fight poverty and other ills. Terrorism is in fact an offshoot of all those social problems that the region faces," he said.

The Kathmandu declaration of SAARC had committed itself to 'increased cooperation and full implementation' of international conventions against terrorism.

But the summit was hijacked by the dramatic handshake offer of Pakistan President Pervez Musharaf to Prime Minister Atal Bihari Vajpayee.

The Kathmandu declaration had also called on 'all states to prevent and suppress the financing of terrorist acts by criminalising the collection of funds for such acts and refraining from organising, instigating, assisting or participating in terrorist acts in states or acquiescing in organised activities within its territory directed towards the commission of such acts'.

But an Indian official said ever since the adoption of Kathmandu declaration there has been 'no significant gains' made in its fight against terrorism.