Mr. Chairman,
Excellencies, Ladies and Gentlemen,

Let me begin by conveying our appreciation to BIISS for arranging this seminar to discuss the outcome of the 13th SAARC Summit in a timely manner.

Over the past few weeks, we have meantime seen the assessments of the outcome of the Summit by analysts, business leaders and think-tanks in the region and outside. The view of the overwhelming majority is that the Summit has marked a turning point in the history of SAARC. The two keynote presentations have elaborated on the achievements made. I would like to share my overall assessment with you.

In preparing for the Summit, we have identified three basic impediments to progress in SAARC - political will, institutional weakness, and lack of viable financial mechanism.

I believe, the most important aspect of the Dhaka Summit has been the clear commitment made by the South Asian Leadership towards collective efforts for building the future of South Asia.

As you are aware, in their 2002 Kathmandu Summit, SAARC Leaders made a commitment to the realization of the vision of a South Asian Economic Union (SAEU) through a phased and planned process. In Islamabad, they reiterated this commitment.

A forward movement in that direction was initiated by the signing of the SAFTA Framework Agreement. We have been putting forward the view that progress towards realization of the vision requires drawing up a road map detailing the successive steps forward - Free Trade Area, Customs Union, and the Common Market. In this context, I have been putting particular emphasis on one point - translating commitments into action.

At the end of the Dhaka Summit, the question over political will appeared to be a matter of the past. It has indeed been really inspiring to see the SAARC Leaders unanimously endorse our idea of launching the next decade as the decade of implementation. The 13th Summit, as you all know, has taken five crucial time-bound decisions in that direction - decisions that have far-reaching implications.

First, Leaders decided that a Special session of the Standing Committee should be convened to elaborate an Agenda for SAARC's Third Decade. They have set the time frame - first half of April 2006.

Second, they decided to set up an Expert Group to undertake a comprehensive Review and Reform of all SAARC institutions including the Secretariat and the Regional Centres. The Draft Terms of Reference for the Group has been already circulated within stipulated time and the group is expected to be formed and start working soon. The Council of Ministers has been mandated to take necessary decisions on the recommendations of the Group at the inter-Summit meeting in July 2006.

Third, they decided to set up effective financial mechanism for implementation of regional and sub-regional programmes and projects under SAARC. The SAARC Finance Ministers Meeting in Islamabad expected to be held by early January 2006 will take necessary decisions including establishment of a SAARC Development Fund.

Fourth, they decided to welcome external funding including from extra-regional states and IFIs for projects under SAARC.

Fifth, they directed that SAFTA Agreement must enter into force with effect from 1 January 2006. I share the satisfaction with you that the SAFTA negotiations have concluded successfully on 30 November thus ensuring entry into force of the Agreement by the stipulated date.

Mr. Chairman,

The second important aspect of the Dhaka Summit was the positive outcome in the area of SAARC's external profile and linkages. The decision on admission of Afghanistan as member and to welcome China and Japan as observers gave SAARC an altogether new depth and dimension. By reaching out beyond its seven members, SAARC has demonstrated itself as a more open, dynamic and confident regional organization.

SAARC's potential and progress have not gone unnoticed. You are aware, on the occasion of the Summit, Prime Minister Khaleda Zia, SAARC Chairperson received messages of felicitations from the Prime Minister of China, the Prime Minister of Japan, the UN Secretary General, and the President of the European Commission. This demonstrated an unprecedented interest in SAARC by the world community.

We should not miss the significance of these developments.. South Asia today is an emerging global economic force. It has been enjoying sustained growth and macro-economic stability for over a decade. It has a huge market of 1.4 billion people with more than 400 million middle class consumers and a combined GDP of over US$605 billion.

South Asia's opportunities are enhanced by the scope of inter-regional cooperation with BIMSTEC, ASEAN and the Greater Mekong Sub-region. The potentials of a free trade area in the region and beyond, and the extent of regional resources - both human and natural - bear immense economic possibilities.

Our region however, faces formidable challenges. The average per capita GDP of South Asia was US$ 510 in 2003 as against developing country average of $1280. Our region needs to attain a sustained growth of 7-9% in order to achieve the MDGs. Intra-regional trade in SAARC accounts for only 4.2% of its total trade, as against ASEAN's 27.8%, NAFTA's 46% and EU's 62%. Only 1% of global FDI comes to South Asia. Only 1% of global tourists visit this region. Widespread incidence of poverty, illiteracy and natural disasters are among the pressing common challenges.

Finally, Mr. Chairman, the most important message coming out of the Dhaka Summit was that SAARC must make itself relevant to the life of the common people of South Asia. The basic purpose of SAARC is to improve the standards of living of the common South Asian men, women and children.

To that end, as proposed by Bangladesh, the Dhaka Summit proclaimed 2006-2015 as the SAARC Decade for Poverty Alleviation. The SAARC Leaders endorsed the SAARC Development Goals (SDGs) and directed implementation of the ISACPA recommendations and the SAARC Plan of Action to address poverty in the region.

I can assure you that the Bangladesh chairmanship of SAARC will devote itself to fully realizing a 'people's SAARC'. As part of this mission, poverty alleviation will remain high on our national and regional agenda.

Mr. Chairman,

I should like to conclude by underlining one point - South Asian nations must now take concrete steps to move the process of regional cooperation decisively forward. We must combine our strengths to face the common challenges before our nations, to realize the potential of our region, and to meet the shared aspirations of our peoples. Today, after the 13th Summit, I have no doubt that together we can make it happen.

I thank you.