"All of our prime ministers have done their best to improve relations with our neighbours, but this neighbour never learns", he said referring to Pakistan amid a smattering of laughter in the house.
Interestingly, Pakistan's Home Minister Chaudhary Nisar, who was the host, also skipped the lunch.
Mr Singh said "dark clouds of terrorism" are enveloping not only South Asia but the entire world which is "extremely anxious of this grave danger".
While earlier reports said that Rajnath Singh's speech was "blacked-out", Indian government sources clarified that it is standard SAARC procedure to only broadcast the speech of the home nation.
Chaudhry Nisar Ali Khan says no country should attack "unarmed" people in the name of fighting terrorism.
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The Indian minister was taken to his hotel in a chopper as he was given a "presidential level security" amid threats by the militant groups. "We have seen it make progress; we want to see more progress on its part", Toner said when asked about Home Minister Rajnath Singh's visit to Islamabad for the SAARC meeting. "Those who provide support, encouragement, give sanctuary and safe haven and assistance to terrorists and terrorism must be isolated", he said.
He categorically stated that there is no good or bad terrorist.
"We are angry and saddened by the manner in which the home minister was treated in Pakistan", senior Congress leader Abhishek Manu Singhvi told reporters here.
"Terrorism is obviously a reality in both countries, and in order to effectively confront it, they need to work together", he added.
"It needs to be ensured that terrorism is not glorified and is not patronised by any state".
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Asked if India thinks Home Minister's visit to Islamabad was successful given the chill in Indo-Pak ties, Swarup said this was a multilateral event during which there are important issues to discuss and deliberate upon including cross border terrorism, drug trafficking and fake currency notes.
Soon after Singh completed his speech, some TV channels went on to blame Pakistan of blacking out its telecast. Members of the Indian media, who had come from New Delhi to report on the conference, were not allowed to cover the speech.
Taking a dig at Modi, Singhvi said: "Pakistan routinely insults India but the Modi government rolls out the red carpet - first for the Pakistan prime minister and then for the ISI (Inter-Services Intelligence)".
Rajnath Singh called for "strongest action not only against terrorists or organisations but also against those individuals, organisations and nations which support terrorism".
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