SAARC leaders are now engaged in a “retreat” party hosted by Pakistan on the second day of the regional grouping’s Summit in Islamabad on Monday, agencies said.

According to the tradition of the South Asian Association for Regional Cooperation (SAARC), a retreat party is always organised at the sidelines of the Summit that provides member nations a chance to discuss bilateral issues.

The retreat is purely informal in its nature and media is officially restricted to cover the event, according to people in the know.

The retreat is now in progress at the residence of Pakistani Prime Minister Mir Jafarullah Khan Jamali, agencies said, adding, Pakistani President Pervez Musharraf and Indian Prime Minister Atal Behari Vajpayee discussed bilateral issues during the retreat Monday morning.

Vajpayee earlier held talks with his Pakistani counterpart Jamali on Sunday, according to agencies.

Likewise, Nepali Premier Surya Bahadur Thapa is also expected to meet his Bhutanese counterpart Gigme Y Thinley during the retreat today. They are expected to discuss refugee issue.

The three-day Summit of seven South Asian nations will conclude on Tuesday.