The permanent Secretariat of SAARC, the South Asian Association for Regional Cooperation, is located in Kathmandu, Nepal. SAARC was established on 8 December 1985 through the signing of its charter in Dhaka, Bangladesh, by the founding member states of Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka, with Afghanistan joining later in 2007. Although the organisation was founded in Dhaka, its administrative Secretariat, which coordinates and monitors implementation of SAARC activities and provides technical support to member states, was established in Kathmandu in January 1987, headed by a Secretary-General appointed on rotation among member states along with directors and staff drawn from across the region. Nepal is the correct answer because Kathmandu was deliberately chosen to host the permanent administrative body, distinct from the location where the founding summit and charter signing occurred. Nepal's selection reflects a common diplomatic practice of placing a regional body's headquarters in a smaller or more neutral member state rather than in the bloc's largest economy, reducing the perception that any single powerful member controls the organisation's day-to-day functioning. India is incorrect as an answer because despite being SAARC's largest member by population, economy and territory, and despite hosting several SAARC summits, it does not host the Secretariat itself. Bangladesh is a tempting distractor because SAARC's founding charter was signed there in 1985, but the charter-signing city and the permanent Secretariat's host city are two separate facts, and Dhaka does not house the ongoing Secretariat. Sri Lanka is incorrect and unrelated to the Secretariat's location, though it has hosted SAARC summits and cultural events. A common exam confusion is conflating 'where an organisation was founded or signed into existence' with 'where its permanent headquarters is located', which are frequently different for regional bodies.