Fourth Summit of SAARC was held in 1988 in:

Dhaka (Bangladesh)

Islamabad (Pakistan)

Colombo (Sri Lanka)

None of these

Islamabad Pakistan.
The fourth summit became held in Islamabad, Pakistan on 29–31 December 1988 and become attended by means of the presidents of Bangladesh, the Maldives and Sri Lanka, the prime ministers of India and Pakistan, and the kings of Bhutan and Nepal.