For the first time, Dhaka is set to host the headquarters of an inter-governmental organisation as the Bimstec secretariat will be formally inaugurated today for closer economic integration through collective action.
The establishment of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) secretariat in the country is considered a diplomatic success for Bangladesh.
Prime Minister Sheikh Hasina will inaugurate the secretariat in the capital's Gulshan.
Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand are members of the Bimstec bloc.
Bimstec started its journey with only four participating members and six areas of cooperation but now it has expanded to seven members and fourteen areas of cooperation.
Trade and investment
In 2004, the member countries signed a framework agreement on trade and investment to boost economic relations among the countries.
The framework covers trade, investment and service sector cooperation and Bangladesh has been given a lead role to steer the cooperation area.
“We will sign four instruments under the framework and their texts have been finalised,” said an official of the Foreign Ministry.
The signing process of the four instruments has been delayed since 2009 as one member did not submit its tariff schedule - an essential component of the instruments, he said.
“Each member will provide a positive list under which it will allow import of specific commodities,” the official said.
He added that the Association of Southeast Asian Nations (Asean) would become a free trade area (FTA) from December 2015, as two members of that bloc are also members of Bimstec.
“The other five are the members of the South Asian Association for Regional Cooperation (Saarc) and we expect to create a big economic bloc in Asia,” he said.
The group constitutes a bridge between south and southeast Asia and represents a reinforcement of relations among the member countries.
Connectivity
The group will provide an opportunity for member countries to connect to each other physically.
Bangladesh, India and Myanmar are members of the BCIM Economic Corridor initiative, and if these three countries are connected, Dhaka and New Delhi could be easily connected with Bangkok as Thailand shares a border with Myanmar, the official said.
“Under the Saarc framework, there is a plan to connect its members and the move will also supplement the Bimstec effort of movement of goods and people throughout the region,” he said.
Energy
Myanmar, Nepal, Bhutan and the northeast of India have huge hydroelectricity potential and Bimstec is trying to tap the prospect for the betterment of the bloc.
“”We are planning to have a regional grid so that power can flow from one country to another without any hindrance,” the official said.
Several meetings have already been held on the issue and the third ministerial meeting on power would be held in Kathmandu this year, he added.
Bimstec secretariat
Bimstec was established on June 6, 1997, in Bangkok and the first summit was held in the same city in 2004. The second was held in New Delhi in 2008 and the third was in Nay Pyi Taw in 2014.
The forum has established a platform for intra-cooperation between Saarc and Asean members. During the 13th Bimstec ministerial meeting held in Nay Pyi Taw in 2011, it was unanimously decided that the secretariat would be set up in Bangladesh and the first secretary general would be appointed from Sri Lanka.
Eventually, the government allocated a residential house in Gulshan area and proper restructuring and reorganising has been done to give it an official shape.
The secretariat has been in operation since July this year.
The first Secretary General Sumith Nakandala joined the secretariat in late July and assumed office in Dhaka from August.