This study is carried out to compare the performance of SAARC and EU, and to seek the main hurdles in the way of SAARC. Results of the study indicates that EU is proved to be very successful in achieving their goals while, SAARC has failed to retain it. The study also reveals that economic stability and standard of education are the necessary factors for a successful journey of an organization. Because education is the backbone of development and civilized and developed society can never be achieved without education. To overcome the economic problems of South Asia, it member countries should establish an open market and should launch a single unit of money like EURO. Similarly SAARC should resolve their conflicts through negotiations to bring the defense budget down and give much attention to the education and other developmental sectors. SAARC should also promote tourism and other healthy activities to increase the inter- stat interaction.