Geography does not restrict two countries from reaching out to each other. If that were the case US wouldn't had been our largest trading partner.
You can name your arrogance whatever you like, frankly speaking no body in Pakistan gives a damn about Modi or Modi's India. The only time we hear is when there are talks about terrorism and Indian hand in it. Till now Pakistan was taking hits and continue to be blamed and bashed but now things are becoming different. I bet you haven't seen Pakistan this proactive and vocal about Indian sponsored terrorism inside Pakistan. SAARC countries are fully aware why Pakistan cannot and is hesitant where India is involved, this is also true vice versa. There wont be a SAARC without Pakistan, anything else would be a bilateral agreements between two countries and India cannot stop Pakistan for having that with any country. Russia has started opening up to Pakistan despite Indian annoyance and pressure. Do you believe the world resolves around Indian whims and wishes? Think again!
India is nowhere near that position where it could simply dictate terms to other countries in the region.