The permanent headquarters of the SAARC (South Asian Association for Regional Cooperation) secretariat is located in Kathmandu, Nepal. Option 1 is the correct answer. This means that the main office of SAARC, which serves as the administrative and coordinating body for the organization, is situated in the capital city of Nepal.

Option 2, Dhaka, is not the correct answer. Although Bangladesh is a member country of SAARC, it does not host the permanent headquarters of the secretariat.

Option 3, New Delhi, is also not the correct answer. While India is one of the founding members of SAARC and plays a significant role in the organization, its capital city is not the location of the permanent headquarters.

Option 4, Islamabad, is also incorrect. Although Pakistan is a member country of SAARC, its capital city does not host the permanent headquarters of the organization.

Therefore, the correct answer is option 1, Kathmandu.