January-March 2012

Newsletter of the South Asian Association for Regional Cooperaton

SAFTA Ministerial Council convenes

The SAFTA Ministerial Council convened its Sixth Meeting in Islamabad on 16 February. The Councils session was preceded by the Seventh Meeting of SAFTA Committee of Experts on 14-15 February. The Council decided to launch a fresh round of negotiations for further reduction in the Sensitive Lists under SAFTA. Earlier, Member States had resolved to reduce their Sensitive Lists by at least 20% by 1 November 2011. All Member States did adhere to this resolution, while some reduced their Sensitive Lists even more than the required percentage. In keeping with the directive of SAARC Leaders to encourage the participation of private sector in such meetings, SAARC Chamber of Commerce and Industry (SCCI) was invited to make a presentation on enhancing trade in the region at the Open Session of SAFTA Committee of Experts. On behalf of SCCI, its President, Vikramjit Singh, made the presentation, following which he held discussions with the Members of the Committee. The SAFTA Ministerial Council, which meets at least once a year, is the highest body responsible for the administration and implementation of SAFTA and is assisted by the SAFTA Committee of Experts. Signed on 6 January 2004, SAFTA entered into force on 1 January 2006.

South Asian University invites applications

The Governing Board of the South Asian University (SAU) held its Second Meeting in New Delhi on 9 March. The Board reviewed the status of implementation of decisions of its First Meeting held in New Delhi in March 2011. In addition to approving the budget for 2012, the Board also discussed a number of academic, administrative and financial aspects of the University. Established in August 2010, the South Asian University is a landmark achievement in the regions quest of providing world-class education to South Asian students. In its second year of functioning, SAU has 156 students enrolled for Masters Degrees in Development Economics,

International Relations, Sociology, Law, Biotechnology and Computer Science. As this news goes to print, SAU invites applications from South Asian students for admission into its third academic

year, the common entrance examination for which is scheduled to be held in SAARC capitals on 27 May 2012. The third academic session will commence on 16 July 2012. For further information, please visit: http://www.southasianuniversity.org.

SAARC NEWS: January-March 2012 1

SAARC NEWS is the official Newsletter of the South Asian Association for Regional Cooperation (SAARC) and is published by its Secretariat in Kathmandu. It reports on on-going developments, decisions and meetings of the Association. It also covers activities within South Asia aimed at promoting regional cooperation.
Newsletter of the South Asian Association for Regional Cooperaton

January-March 2012 Vol. XIX

No. 1

Editorial
Ahmed Saleem took over the mantle of the South Asian Association for Regional Cooperation (SAARC) in March. He is the eleventh Secretary-General of the regional Association and succeeds Fathimath Dhiyana Saeed. Meeting in Dhaka in January, Finance Ministers iterated the importance of intensified regional cooperation in trade and finance. Finance Secretaries who had assembled a day ahead at the same venue prepared the groundwork for the Ministerial meet. Convening on the sidelines of their meeting in Dhaka, Finance Ministers also held the Second Meeting of the Governing Council of the SAARC Development Fund of which they are valued members. In their country statements, the Ministers underscored the need to operationalize the Economic and Infrastructure Windows of the Fund. They also called for speedy implementation of the projects that are already underway under the Funds Social Window. At their Sixth Meeting in Islamabad in February, the SAFTA Ministerial Council decided to launch a fresh round of negotiations for further reduction of the number of products from the Sensitive Lists maintained by Member States. The Seventh Meeting of the SAFTA Committee of Experts preceded the Councils Session. A group of eminent experts gathered over their two-day meet in New Delhi in February to strengthen anti-terrorism mechanisms in the region. Representatives of all Member States attended the meeting. Meeting in Kathmandu and Islamabad in January and February respectively, an Expert Group called upon Member States to ratify the SAARC Agreement on Trade in Services to put it into force. The Group also urged all Member States to finalize before June 2012 the Schedules of Specific Commitments as provided for in the Agreement. Bangladesh hosted the Eleventh SAARC Trade Fair and Tourism Mart in Dhaka in March. Besides Member States, Observer States to SAARC also participated in the mega event for the first time. Work on Regional Poverty Profile advanced with the convening of an Inter-Governmental Meeting at the SAARC Secretariat in March. The 2009-10 edition of the Profile covers the theme, Food Security Challenges for the poor and social inclusion. During the first quarter of the year, the Governing Board of the South Asian University met in New Delhi. Sri Lanka organized a Symposium on Sustainable Energy Initiative for the SAARC Region and a Seminar on Corporate Taxation Issues in Colombo in March and April respectively. Nepal hosted a Workshop on Experience Sharing of Nepalese Biogas, Solar Home System and Micro-hydro Power Projects with other SAARC Countries in Kathmandu in March. A flurry of activities marked the calendar of the SAARC Cultural Centre during the period under review. At the SAARC Secretariat in Kathmandu, the Secretary-General received the Ambassadors of China and Japan to Nepal, besides entertaining several delegations from SAARC-affiliated bodies. In the meanwhile, Mohammad Ibrahim Ghafoori from Afghanistan joined the Secretariat as Director, succeeding Azizuddin Ahmadzada.

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BOARD OF EDITORS Mohammad Ibrahim Ghafoori Tareque Muhammad Pema L. Dorji Kumar Shrestha

2 SAARC NEWS: January-March 2012

Finance Ministers meet

consideration should always be extended to the Least Developed Countries in SAARC. She expressed happiness over the establishment of the South Asian Regional Standards Organization (SARSO) in Dhaka. The outgoing Chairperson of the forum of SAARC Finance Ministers, Wangdi Norbu, Finance Minister of Bhutan and its incoming Chairperson, Abul Maal Abdul Muhith, Minister for Finance of Bangladesh also addressed the Inaugural Session. The Ministers held discussions on the current status of economic and financial cooperation in the region. They reviewed the progress of implementation of the recommendations of their Fourth Meeting. They emphasized that the text of the Agreement on Promotion and Protection of Investments be finalized by the forthcoming Eighth Meeting of the Sub-Group for signature at the Eighteenth SAARC Summit proposed to be held in Nepal. In his capacity as the Chairperson of SAARCFINANCE, Fazeel Najeeb, Governor, Maldives Monetary Authority, made a presentation on the activities of SAARCFINANCE since the Fourth Meeting of SAARC Finance Ministers held in Thimphu in August 2010. He informed the Meeting that the Memorandum on the Framework of Swap Arrangement has been finalized and is likely to be operationalized soon. The Meeting noted that the Sixth Informal Meeting of SAARC Finance Ministers is scheduled to be held in Manila on 3 May 2012 on the sidelines of the Forty-fifth Annual Meeting of the Asian Development Bank. It agreed on Eurozone Crisis and implications for South Asia as the topic for the Informal Meeting. The Fifth Meeting of SAARC Finance Secretaries preceded the Ministerial Meeting on 29 January. Mohammad Tareque, Finance Secretary, Government of Bangladesh, chaired the Secretary-level meeting. The Sixth Meeting of SAARC Finance Ministers is proposed to be held in Colombo in 2013.

SAARC Finance Ministers Fifth Meeting in Dhaka on under the Chairmanship of Abdul Muhith, Minister for Bangladesh.

held their 30 January Abul Maal Finance of

Sheikh Hasina, the Prime Minister of Bangladesh, inaugurated the meeting. In her Inaugural Address, the Prime Minister underlined that economic integration was a long-term and incremental process requiring action, inter alia, on making more progress on the South Asian Free Trade Area (SAFTA), further reducing the Sensitive Lists, dismantling non-tariff and para-tariff barriers and progressing towards the harmonization of products standards. She also emphasized that while undertaking all these actions, special

SAARC Cultural Festival held

The first quarter of 2012 has been a busy period for the SAARC Cultural Centre in Colombo. Activities for the first quarter started with the launching of a SAARC Film Day series featuring award winning films from the region. The Kite Runner, a film based in Afghanistan, The Clay Bird, a film from Bangladesh and Song of the Wind, a film from Bhutan were screened in January, February and March respectively. In February, the Centre organized a SAARC Cultural Festival in Colombo and Galle featuring dancers and musicians from Bangladesh, Bhutan, India, Maldives and Sri Lanka. A colorful parade and a food festival of SAARC countries were held in Colombo in parallel to the Festival. In March, the Centre organized a Regional Conference on Diasporic Cultures of South Asia. The Conference finalized the themes and topics for undertaking research projects on Diasporic Cultures. Participants from Afghanistan, Bangladesh, Bhutan, India, Maldives, Pakistan and Sri Lanka attended the Conference. In the meanwhile, the Centre celebrated the International Womens Day by organizing a panel discussion on the subject of Cultural Identity and Contribution of Women in South Asia which was participated in by prominent

women personalities involved in Arts and Culture. The Centre also celebrated its Foundation Day in March with a lecture delivered by Ambassador Nihal Rodrigo, former Secretary-General of SAARC. He spoke on the topic, Progress of SAARC in the current Global Context.
SAARC NEWS: January-March 2012 3

SDF Governing Council convenes

The Governing Council of the SAARC Development Fund (SDF) convened its Second Meeting in Dhaka alongside the Fifth Meeting of SAARC Finance Ministers on 30 January. All the Members of the Governing Council or their representatives participated in the Meeting. Wangdi Norbu, Minister of Finance of Bhutan, opened the Meeting. In his opening remarks, the Minister noted that SDF had made significant progress since its formal establishment in June 2010. Stressing upon the importance of operationalizing the Economic and Infrastructure Windows of SDF, he called for speedy implementation of the projects under the Social Window. The Governing Council elected Abul Maal Abdul Muhith, Finance Minister of Bangladesh, as the Chairperson of the Second Meeting. On assuming the Chair, the Minister advised the SDF Secretariat to take up demand-driven long-term projects. He underscored the need to operationalize the Economic and Infrastructure Windows. He expressed the view that converting SDF into the SAARC Development Bank could be accomplished after operationalization of all the three Windows of SDF. During the Meeting, Karma, Chief Executive Officer (CEO) of SDF, made a presentation on the functioning of SDF. Commenting on the report of the CEO, the Governing Council suggested that SDF Board should employ improved screening process in respect of the proposals which are not received from SAARC bodies. The Council considered the Reports of the Ninth, Tenth, Eleventh and Twelfth SDF Board Meetings. It approved the proposal for appointing a leading audit firm as the External Auditor for auditing the SDF accounts of 2008-2010, 2011 and 2012. In order to enhance the efficiency and flexibility of SDF, it approved delegating most of its authorities to the SDF Board of Directors.

Experts meet to strengthen Anti-Terrorism Mechanisms

A High Level Group of Eminent Experts mandated to strengthen Anti-Terrorism Mechanisms in SAARC met in New Delhi on 9-10 February. Representatives of all Member States attended the meeting. At their two-day meet, the Eminent Experts recognized the core obligations under the SAARC Regional Convention on Suppression of Terrorism and its Additional Protocol as creation of offences under domestic law, strengthening of extradition procedures and providing the domestic courts with effective jurisdiction (extra-territorial) to prosecute offenders where extradition is not granted. On behalf of their Governments, the representatives of India and Sri Lanka offered to assist other Member States in drafting enabling legislation for enactment of the Convention. Among other things, the Experts underscored the need to review the technical requirements and functioning of the web portal maintained in a Secure Data Centre by SAARC Terrorist Offences Monitoring Desk (STOMD) & SAARC Drug Offences Monitoring Desk (SDOMD), both of which are located in Colombo. They recommended that a meeting of technical experts from Member States be held to undertake such an exercise.

A delegation from SAARC Chamber of Women Entrepreneurs Council led by its Chairperson Pramila Acharya Rijal called on Ahmed Saleem, Secretary-General of SAARC, on 22 March.
4 SAARC NEWS: January-March 2012

Workshop on Experience Sharing concludes

economic, awareness building, financing, management practices and innovative aspects of biogas programme for the benefit of other Member States; find ways and means for sustainable dissemination programmes in rural areas of Member States; and facilitate sharing of the best practices and technologies among Member States. The SAARC Energy Centre was established in Pakistan in 2006. The primary mandates of the Centre are to facilitate intra-regional trade through establishment of interconnection; serve as energy information network; enhance expertise in energy development and management; promote development of new and renewable energy resources; and promote energy efficiency and conservation.

The SAARC Energy Centre (SEC) organized a SAARC Workshop on Experience Sharing of Nepalese Biogas, Solar Home System and Micro-hydro Power Projects with other SAARC Countries in Kathmandu on 13-14 March. The Workshop was organized in collaboration with the Alternative

Energy Promotion Kathmandu.

Center

(AEPC),

The two-day Workshop was organized under SECs Programme, Thematic Area, Technology Transfer and Sharing Best Practices. Its objectives were to share experience on technical,

Symposium on Sustainable Energy Initiative held

Sri Lanka organized the Fifth SAARC-Japan Symposium in Colombo on 1-4 March. All Member States participated at the Symposium. Organized in collaboration with the Sustainable Energy Authority of Sri Lanka and the Department of Mechanical Engineering, University of Moratowa, the Symposium was devoted to the theme Sustainable Energy Initiative for the SAARC Region. Seventeen foreign experts from SAARC member countries and Japan made presentations at this two-day event funded by the Government of Japan. They also participated in the two-day site visit to Hambantota sponsored by the Asian Development Bank (ADB).

A delegation of SAARC Chamber of Commerce and Industry led by its President Vikramjit Singh Sahney paid a courtesy call on Ahmed Saleem, Secretary-General of SAARC, on 30 March.
SAARC NEWS: January-March 2012 5

Expert Group on Trade in Services meets

The Expert Group on the SAARC Agreement on Trade in Services (SATIS) held its Eighth Meeting on 17-18 January. The Group convened its Ninth Meeting on 13 February. Opening the two meetings in Kathmandu and Islamabad in January and February respectively, Amrit Lugun, Director, SAARC Secretariat, requested the remaining Member States to ratify the Agreement at the earliest. He also requested them to finalize the Schedules of Specific Commitments by the agreed deadline of June 2012. At its successive meetings, the Expert Group emphasized that trade in services would foster a friendly climate for cross border investments. It reiterated that the Schedules of Specific Commitments expected to be finalized before June 2012 should at least be equal to the General Agreement on Trade in Services (GATS), if not GATS plus, in order to enable Member States to derive benefit out of SATIS. The Expert Group reviewed progress in the exchange of Initial Request Lists and held bilateral negotiations on the Schedules of Specific Commitments. The Group agreed that the Final Offer Lists would be tabled at its Tenth Meeting. It also agreed to convene its final (Eleventh) meeting in the first week of June 2012 to finalize the Schedules. It called for early ratification of SATIS by all Member States so that it could enter into force by the time the Schedules are finalized. At the Expert Groups Eighth Meeting in Kathmandu, Ram Upendra Das, SAARC Consultant, made a presentation on the Study undertaken by him on Development of Institutional Framework for Data Collection on Trade in Services, including Capacity Building. Following the presentation, he responded to queries raised by the delegates. Das has also been entrusted to examine the regulations of Member States impeding trade in services. Member States signed SATIS during the Sixteenth Summit held in Thimphu in April 2010.

Seminar on Taxation concludes

Sri Lanka organized a SAARC Seminar on Corporate Taxation Issues in Colombo on 20-23 February. Representatives of Tax Authorities of all Member States participated in the Seminar. The First Meeting of Competent Authorities on Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters held at the SAARC Secretariat, Kathmandu, on 5-6 April 2011 had recommended the convening of this Seminar. Article 10 of the SAARC Limited Multilateral Agreement on Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters mandates Member States to share information about the training programmes and regional and international conferences conducted by them. Earlier, India organized a Seminar on Automation and System Management at National Academy of Direct Taxes (NADT), Nagpur, on 11-14 July 2011.

Andrew Ellis, Director for Asia and Pacific, International Institute for Democracy and Electoral Assistance (International IDEA) called on Ahmed Saleem, Secretary-General of SAARC, on 30 March.
6 SAARC NEWS: January-March 2012

Regional Poverty Profile nears completion

The Inter-governmental Meeting responsible for the preparation of Regional Poverty Profile (RPP) held its Second Meeting at the SAARC Secretariat, Kathmandu, on 5-6 March. The 2009-10 edition of the Profile is devoted to the theme Food Security Challenges for the poor and social inclusion. The Meeting called upon Member States to provide additional information to the Secretariat by 30 April 2012 to enable the Core Group to compile the Profile. The Group consists of a Lead Consultant and two Independent Experts nominated by Member States. The Meeting mandated the Group to submit the draft of the Profile to the SAARC Secretariat by 30 June 2012 for circulation to Member States for their views and comments before it is sent to print. The Regional Poverty Profiles are aimed at promoting the sharing of the best practices and experiences of Member States in poverty alleviation. The 2007-08 version of the Profile covered the theme,

Infrastructure Development and Poverty Reduction in South Asia.

Eleventh SAARC Trade Fair concludes

About 350 stalls were set up at the event, with the host country displaying their products at around 180 booths. The host also organized the SAARC Cultural Festival on the sidelines of the Trade Fair. A.M.A. Muhith, Finance Minister of Bangladesh, inaugurated the three-day Trade Fair in Dhaka. The Twelfth SAARC Trade Fair and Tourism Mart are scheduled to be held in Maldives in the latter part of 2012.

In order to promote intra-SAARC trade, SAARC Trade Fairs are held regularly in Member States. As a sequel, Bangladesh organized the Eleventh SAARC Trade Fair and the SAARC Tourism Mart in Dhaka on 30 March1 April. All Member States participated in the Fair. During the mega-event, Bangladesh provided one complementary stall each to Member States and Observer Countries to SAARC to display their products.
SAARC NEWS: January-March 2012 7

Saleem takes over the mantle of SAARC

Saleem is the eleventh Secretary-General of the eight-member regional grouping founded in 1985. He succeeds Fathimath Dhiyana Saeed. Born in May 1949 in Mal, Saleem joined the Maldivian Ministry of Foreign Affairs in 1968. He had a distinguished career spanning for over 26 years during which he served as Chief of Protocol and Head of the Multilateral Division at the Ministry, among others. As a career diplomat, Saleem served at the Maldives High Commission in Sri Lanka and its Permanent Mission in New York. During his deputation to the Ministry of Finance for one year in 1977, he had the privilege of serving as his Governments first Alternate Governor for the World Bank, International Development Association and Asian Development Bank. From 1990 to 1993, he served as the first Director from Maldives at the SAARC Secretariat in Kathmandu. Saleem was one of the original nine members when the Human Rights Commission of Maldives was first established by the Presidential decree on 10 December 2003. In 2006, he was appointed as the President of the newly constituted Commission, a fully autonomous body under the Maldivian law and in full conformity with the Paris Principles. He served in that capacity until August 2010. The Secretaries-General are appointed by the SAARC Council of Ministers upon nomination by a Member State on the basis of rotation in the alphabetical order.

Ahmed Saleem of Maldives assumed responsibility as the Secretary-General of the South Asian Association for Regional Cooperation (SAARC) with effect from 12 March.

The Ambassador of China to Nepal, Yang Houlan, paid a courtesy Kunio Takahashi, Ambassador of Japan to Nepal, paid a courtesy call on the Secretary-General on 27 March. call on the Secretary-General on 21 March.

Changeover of Directors takes place

Upon completion of his tenure at the SAARC Secretariat, Azizuddin Ahmadzada, Director from Afghanistan left Kathmandu on 22 January. His successor, Mohammad Ibrahim Ghafoori, assumed duties at the Secretariat on 23 January. Prior to his appointment as Director at the Secretariat, Ghafoori served as Deputy Director-General of UN and International Conferences Department at the Ministry of Foreign Affairs in Kabul. Directors at the SAARC Secretariat are appointed by the Secretary-General upon nomination by Member States for a period of three years.

8 SAARC NEWS: January-March 2012