The section 'Peace and Cooperation' examines the nuanced relationship between South Asian states, emphasizing their recognition of the necessity for collaboration amid various conflicts. It discusses the South Asian Association for Regional Cooperation (SAARC), formed to enhance regional ties since 1985. While SAARC has encountered challenges due to political differences, it has aimed to promote peace through agreements like the South Asian Free Trade Agreement (SAFTA). The text elaborates on how fostering trade can facilitate better relations, contrasting the conflict-ridden history of India-Pakistan interactions with efforts at mutual understanding and cooperation. Also discussed are the influences of external powers such as the United States and China, highlighting their roles in the region. The section concludes by suggesting that the future of South Asia as a cooperative bloc hinges largely on the will of its peoples and governments to navigate their differences and collaborate on shared challenges.