No decision has, however, been taken on Jaitley attending the summit as Prime Minister Narendra Modi is likely to take the final call.
Recently, Union Home Minister Rajnath Singh visited Islamabad to attend a SAARC conference, but the way he was treated caused India's chagrin.
The SAARC regional summit Jaitley is supposed to attend will be held on August 25 and 26.
The recent utterance of Pakistan Prime Minister Nawaz Sharif eulogising the "the freedom movement" in Kashmir has also taken the bilateral relation to further low.
On Monday, PM Modi, in his Independence Day speech, took an aggressive stance against Pakistan.
He said the people of Balochistan and Pakistan-Occupied Kashmir have thanked him for raising the issues of atrocities committed by Pakistan's security forces in both regions.
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