Project ON

SAAR
C

SAARC

SAARC

South
Asian
Associatio
n
Regional
Cooperati
on

th
MBA (Banking & Finance) 4th
Term, Session 2009-2011

Submitted ByClass Roll NumberExam Roll

NumberRomana NargusA-1462

Submitted To

$ir. KHAIR-UZ-ZAMAN

DECLARTION
E C L A R T I O N

I declare that this project report entitled South Asian Association Regional
Cooperation is original and bonafide work of my own in the partial
fulfillment of the requirements for the award of the Degree of MASTER OF
BUSINESS ADMINISTRATION (Banking & Finance) and submitted to the

Department of Business Administration, Gomal University Dera Ismail

Khan, Khyber.Pakhton.Khwa.
The data that has been collected by me is truly authentic and contains true and
complete information.

Romana Nargus
Class Roll No A-1
Exam Roll No 462

ACKNOWLEDGEMENT
C K N O

L E D G E

E N T

All praise to ALLAH, the most merciful, kind and beneficent,

and the source of all knowledge, wisdom within and beyond our
comprehension. He is the only God, who can help me in every
field of life. All respect and possible tributes goes to my Holy
Prophet Mohammad (SAW), who is forever guidance and
knowledge for all human beings on this earth.
I am proud to say that I am very grateful to my family whose kind
prayers and cooperation helped me at every step of my work. Special
thanks go to my formative Teachers for their cooperation for the sake of
our knowledge.

Romana Nargus

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SAARC

IN THE NAME OF

ALLAH
THE MOST GRACIOUS & THE MOST MERCIFUL

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South Asian Association for Regional

Cooperation (SAARC)

Headquarters
Official languages
Demonym
Chairman
Secretary General
Total Area
Website

Kathmandu, Nepal
English
South Asian
Mahinda Rajapaksa
Fathimath Dhiyana Saeed
5,130,746 km2 (1,980,992 sq mi)
http://www.saarc-sec.org/

WHAT IS SAARC?
The South Asian Association for Regional Cooperation (SAARC) is an organization of
South Asian nations, founded in 1985 and dedicated to economic, technological, social, and
cultural development emphasizing collective self-reliance. Its seven founding members are
Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined
the organization in 2007. Meetings of heads of state are usually scheduled annually; meetings
of foreign secretaries, twice annually. Headquarters are in Kathmandu, Nepal.

HISTORY

OF

SAARC

The South Asian Association for Regional Cooperation (SAARC) is an economic and
political organization of eight countries in Southern Asia. In terms of population, its sphere
of influence is the largest of any regional organization: almost 1.5 billion people, the
combined population of its member states.
In the late 1970s, Bangladesh President Ziaur Rahman proposed the creation of a trade bloc
consisting of South Asian countries. The Bangladeshi proposal was accepted by India,
Pakistan and Sri Lanka during a meeting held in Colombo in 1981. In August 1983, the
leaders adopted the Declaration on South Asian Regional Cooperation during a summit which
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was held in New Delhi. The seven South Asian countries, which also included Nepal,
Maldives and Bhutan, agreed on five areas of cooperation.
Afghanistan was added to the regional grouping at the behest of India on November 13, 2005,
With the addition of Afghanistan, the total number of member states were raised to eight (8).

OBJECTIVES OF SAARC

To improve the quality of life and welfare of people of the SAARC member countries.

To develop the region economically, socially and culturally.

To provide the opportunity to the people of the region to live in dignity and to exploit
their potentialities.

To enhance the self-reliance of the member countries jointly.

To provide conductive climate for creating and enhancing mutual trust, understanding
and application of one anothers issues.

To enhance the cooperation with other developing economies.

To enhance the mutual assistance among the member countries in the areas of
economic, social, cultural, scientific and technical fields.

To have unity among the member countries regarding the issues of common interest
in the international forums.

To extend cooperation to other trade blocks.

To have unity among member countries.

Acceleration of economic growth,

Social progress and cultural development in the region,

promotion of active collaboration and mutual assistance in the economic, social,

cultural, technical and scientific fields and

strengthening of cooperation among the Member States in international forum on

matters of common interest

SAARC SECRETARIAT
The SAARC Secretariat was established in Kathmandu on 16 January 1987 and was
inaugurated by Late King Birendra Bir Bikram Shah of Nepal.
It is headed by a Secretary General appointed by the Council of Ministers from Member
Countries in alphabetical order for a three-year term. He is assisted by the Professional and
the General Services Staff, and also an appropriate number of functional units called
Divisions assigned to Directors on deputation from Member States. The Secretariat

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coordinates and monitors implementation of activities, prepares for and services meetings,
and serves as a channel of communication between the Association and its Member States as
well as other regional organizations.
The Memorandum of Understanding on the establishment of the Secretariat which was signed
by Foreign Ministers of member countries on 17 November 1986 at Bangalore, India contains
various clauses concerning the role, structure and administration of the SAARC Secretariat as
well as the powers of the Secretary-General.
In several recent meetings the heads of state or government of member states of SAARC
have taken some important decisions and bold initiatives to strengthen the organisation and to
widen and deepen regional co-operation.
The SAARC Secretariat and Member States observe 8 December as the SAARC Charter
Day1.

Secretary General, Directors and Staff of the SAARC Secretariat at the function to celebrate
the 25th SAARC Charter Day, 2009 in Kathmandu
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ACTIVITIES OF SECRETARIAT

SECRETARIES GENERAL
Abul Ahsan
Kant Kishore

January 16, 1987 to 15

October 1989
October 17, 1989 to December

Bhargava
Ibrahim Hussain

31, 1991
January 1, 1992 to December 31,

Zaki
Yadav Kant Silwal

1993
January 1, 1994 to December 31,

Naeem U. Hasan

1995
January 1, 1996 to December 31,

Nihal Rodrigo
Q.A.M.A. Rahim
Lyonpo Chenkyab
Dorji
Sheel Kant

1998
January 1, 1999 to January 10,
2002
January 11, 2002 to February 28,
2005
March 1, 2005 to February 29,
2008
March 1, 2008 to present

Sharma

REGIONAL CENTERS
The SAARC Secretariat is supported by following Regional Centres established in Member
States to promote regional cooperation. These Centres are managed by Governing Boards
comprising representatives from all the Member States, SAARC Secretary-General and the
Ministry of Foreign/External Affairs of the Host Government. The Director of the Centre acts
as Member Secretary to the Governing Board which reports to the Programming Committee.

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SAARC Agricultural Centre (SAC), Dhaka

SAARC Meteorological Research Centre (SMRC), Dhaka
SAARC Tuberculosis Centre (STC), Kathmandu
SAARC Documentation Centre (SDC), New Delhi
SAARC Human Resources Development Centre (SHRDC), Islamabad
SAARC Coastal Zone Management Centre (SCZMC), Maldives
SAARC Information Centre (SIC), Nepal
SAARC Energy Centre (SEC), Pakistan
SAARC Disaster Management Centre (SDMC), India
SAARC Forestry Centre (SFC), Bhutan
SAARC Cultural Centre (SCC), Sri Lanka

AREA OF CORPORATION

Agriculture and Rural Development

Health and Population Activities

Women, Youth and Children

Environment and Forestry

Science and Technology and Meteorology

Human Resources Development and

Transport.

ESTABLISHMENT OF HIGH LEVEL WORKING GROUP IN AREAS:

Information and Communications Technology

Biotechnology

Intellectual Property Rights

Tourism

Energy

The council
ORGANIZATION
STRUCTURE OF SAARC
Council of ministers
Standing Committee
Programming Committee
Technical Committee

Secretariat

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THE COUNCIL REPRESENTATIVES

Represented by the heads of foreign Minister of the member of Government

FUNCTIONS: The Highest Policy making body

MEETING: The Council meets once in two years.
COUNCIL OF MINISTERS
REPRESENTATIVES: Represented by the foreign ministers of member Governments
MEETINGS: The Council meets twice a year or more times if necessary
FUNCTION OF COUNCIL OF MINISTERS

It reviews
It reviews
the functioning
the functioning
Of whole body system
Of whole body system

It formulates policies
It formulates policies

Decides the new

Decides the new
areas of coordination
areas of coordination
among the nations
among the nations

Establishment of any
Establishment of any
additional mechanism if any
additional mechanism if any
Decides the issues of general
Decides the issues of general
interests to the SAARC member countries
interests to the SAARC member countries

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STANDING COMMITTEE
REPRESENTATIVES: It consists of Foreign secretaries of members governments
MEETINGS : It is uncertain Meeting will be held whenever there is a necessary
FUNCTIONS OF STANDING COMMITTE

PROGRAM COMMITTEE
REPRESENTATIVE: It includes the senior officials of the member Governments

TECHNICAL COMMITTEE
REPRESENTATIVE: It comprises
the representatives
Functions
of of all countries.

Technical
Committee
Formulating
Projects &
programmes
in their
respective areas

Monitoring &
Implementing
Projects

Submitting reports to
the Standing
Committee via
the Programme
Committee

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TECHNICAL COMMITTEES OF SAARC

CHARTERS OF SAARC

SAARC Charter (Signed in Dhaka on 08th December 1985)

SAARC Social Charter (Signed in Islamabad on 04th January 2004)

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SAARC Social Charter

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THE OBJECTIVE OF THE ASSOCIATION AS DEFINED IN THE CHARTES

ARE:

To promote the welfare of the people of South Asia and to improve their quality of
life;

To accelerate economic growth, social progress and cultural development in the

region and to provide all individuals the opportunity to live in dignity and to realize
their full potential;

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To promote and strengthen collective self-reliance among the countries of South Asia;

To contribute to mutual trust, understanding and appreciation of one another's

problems;

To promote active collaboration and mutual assistance in the economic, social,

cultural, technical and scientific fields;

To strengthen cooperation with other developing countries;

To strengthen cooperation among themselves in international forums on matters of

common interest; and

To cooperate with international and regional organizations with similar aims and
purposes.

Afghanistan was added to the regional grouping at the behest of India on 13 November 2005,
and became a member on 3 April 2007. With the addition of Afghanistan, the total number of
member states were raised to eight (8). In April 2006, the United States of America and South
Korea made formal requests to be granted observer status. The European Union has also
indicated interest in being given observer status, and made a formal request for the same to
the SAARC Council of Ministers meeting in July 2006. On 2 August 2006 the foreign
ministers of the SAARC countries agreed in principle to grant observer status to the US,
South Korea and the European Union. On 4 March 2008, Iran requested observer status.
Followed shortly by the entrance of Mauritius.

DHAKA 2009 SUMMIT

The summit accorded observer status to People's Republic of China, Japan, South Korea and
United States of America. The nations also agreed to organize development funds under a
single financial institution with a permanent secretariat, that would cover all SAARC
programs and also ranging from social, to infrastructure, to economic ones.

CURRENT MEMBERS (alphabetically)

Afghanistan

Bangladesh

Bhutan

India

Maldives

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Nepal

Pakistan

Sri Lanka

OBSERVER

Australia

China

European Union

Iran

Japan

Mauritius

Myanmar (Burma)

South Korea

United States of America

FUTURE MEMBERSHIP

The People's Republic of China has shown its interest in joining SAARC.
While Pakistan and Bangladesh support China's candidature, India is against the
prospect of Chinese membership. China's entry in to SAARC will likely balance
India's overbearing presence there. However, during the 2005 Dhaka summit, India
agreed on granting observer status to the PRC along with Japan. During the 14th
summit, Nepal along with Pakistan and Bangladesh, announced their support for the
membership of China. China seeks greater involvement in SAARC, however, finds it
too early to apply for full membership.

Indonesia intends to become an observer as well, and is supported by Sri

Lanka.

Iran, a state with borders to two SAARC members, has traditionally enjoyed
strong cultural, economic and political relationships with Afghanistan and Pakistan
and has expressed its desire to become a member of the South Asian organization. On
22 February 2005, the Foreign Minister of Iran, Kamal Kharrazi, indicated Iran's
interest in joining SAARC by saying that his country could provide the region with
"East-West connectivity". On 3 March 2007, Iran asked to join the SAARC as an
observer. SAARC Secretary-General Lyonpo Chenkyab Dorji responded by saying
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that Iran's request for observer status would be taken up during a meeting of ministers
of foreign affairs of SAARC member countries in the 3 April summit in New Delhi.

Russia intends to become an observer as well, and is supported by India.

Myanmar has expressed an interest in joining as a full member, even though it

is already a member of the ASEAN. If done so, Myanmar will become the ninth
member in the group. India is currently backing Myanmar. Myanmars military
regime officially applied for full SAARC membership in May 2008. However, the
application is still being considered and the government is currently restricted to
observer status.

South Africa has participated in meetings.

LIST OF SAARC SUMMITS

1st

Dhaka

2nd
10t
3rd
h

Bangalore
Colombo
Kathmandu

November
1617,1998
1986
July 2931,
November 24, 1987

11t
4th
h
5th
12t
6th
h
13t
7th

Kathmandu
Islamabad

January 46, 2002

December 2931, 1988

Mal
Islamabad
Colombo

November 2123, 1990

January 26, 2004
December 21, 1991

Dhaka

November
April 1213,
1011, 2005
1993

h
8th
14t
9th
h
15t

New Delhi
New Delhi
Mal

May 24, 1995

April 34, 2007
May 1214, 1997

Colombo

August 13, 2008

Thimphu

April 2829, 2010

h
16t

December 78, 1985

h
No.
1st
2nd
3rd
4th
5th
6th
7th
8th

Location
Dhaka
Bangalore
Kathmandu
Islamabad
Mal
Colombo
Dhaka
New Delhi

Date
78 December 1985
1617 November 1986
24 November 1987
2931 December 1988
2123 November 1990
21 December 1991
10-11 April 1993
24 May 1995

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9th
10th
11th
12th
13th
14th
15th
16th
17th

Mal
Colombo
Kathmandu
Islamabad
Dhaka
New Delhi
Colombo
Thimphu
Addu

1214 May 1997

2931 July 1998
46 January 2002
26 January 2004
1213 November 2005
34 April 2007
13 August 2008
2829 April 2010
November 2011
(Planned)

SAARC PREFERENTIAL TRADING AGREEMENT

The Agreement on SAARC Preferential Trading Arrangement (SAPTA) was signed on 11
April 1993 and entered into force on 7 December 1995, with the desire of the Member States
of SAARC (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives) to
promote and sustain mutual trade and economic cooperation within the SAARC region
through the exchange of concessions.
The establishment of an Inter-Governmental Group (IGG) to formulate an agreement to
establish a SAPTA by 1997 was approved in the Sixth Summit of SAARC held in Colombo
in December 1991.
The basic principles underlying SAPTA are:
1. overall reciprocity and mutuality of advantages so as to benefit equitably all
Contracting States, taking into account their respective level of economic and
industrial development, the pattern of their external trade, and trade and tariff policies
and systems;
2. negotiation of tariff reform step by step, improved and extended in successive stages
through periodic reviews;
3. recognition of the special needs of the Least Developed Contracting States and
agreement on concrete preferential measures in their favour;
4. inclusion of all products, manufactures and commodities in their raw, semi-processed
and processed forms.
So far, four rounds of trade negotiations have been concluded under SAPTA covering over
5000 commodities.
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Product
ProductAreas
Areas
(scope)
(scope)

All
Allraw
rawmaterials
materials

Semi
Semifinished
finishedproducts
products

Finished
Finishedgoods
goods

SAARC YOTH AWARD

The SAARC Youth Award is awarded to outstanding individuals from the SAARC region.
The award is notable due to the recognition it gives to the Award winner in the SAARC
region. The award is based on specific themes which apply to each year. The award
recognizes and promotes the commitment and talent of the youth who give back to the world
at large through various initiatives such as Inventions, Protection of the Environment and
Disaster relief. The recipients who receive this award are ones who have dedicated their lives
to their individual causes to improve situations in their own countries as well as paving a path
for the SAARC region to follow. The Committee for the SAARC Youth Award selects the
best candidate based on his/her merits and their decision is final.
Previous Winners:
1997: Outstanding Social Service in Community Welfare - Mr. Md. Sukur Salek
(Bangladesh)
1998: New Inventions and Discoveries - Dr. Najmul Hasnain Shah (Pakistan)
2001: Creative Photography: South Asian Diversity - Mr. Mushfiqul Alam (Bangladesh)
2002: Outstanding contribution to protect the Environment - Dr. Masil Khan (Pakistan)
2003: Invention in the Field of Traditional Medicine - Mr. Hassan Sher (Pakistan)
2004: Outstanding contribution to raising awareness for TB and/or HIV/AIDS - Mr. Ajij
Prasad Poudyal (Nepal)
2006: Promotion of Tourism in South Asia - Mr. Syed Zafar Abbas Naqvi (Pakistan)
2008: From Himalayan glaciers to verdant plains to coral reefs protecting the Environment
in South Asia - Ms. Uswatta Liyanage Deepani Jayantha (Sri Lanka)

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Web References
www.google.com
www.Scribd.com/shanza malik
www.shlideshare.net
www.saarc-sec.org/

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