Nepal and BIMSTEC

1. The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) came into being on 6 June 1997 through adoption of the Bangkok Declaration. Its predecessor association is BISTEC, that is, Bangladesh-India-Sri Lanka-Thailand Economic Cooperation. With the membership of Myanmar on 22 December 1997, this regional forum got its current nomenclature as endorsed by the first BIMSTEC Summit held in Bangkok in 2004. As an inter-governmental body of seven Member States, it represents a synergetic bridge between two vibrant regions: South Asia and South East Asia.

As enshrined in the Charter, BIMSTEC aims to create an enabling environment for rapid economic development; accelerate social progress; maintain peace and stability; and promote collaboration, mutual assistance on matters of common interests in the Bay of Bengal region. Home to more than 1.8 billion population with a combined GDP of over 4.5 trillion USD, BIMSTEC Members comprise of Bangladesh, Bhutan, India, Nepal and Sri Lanka from South Asia; and Myanmar, Thailand from South East Asia. Its Secretariat is seated in Dhaka. Nepal and Bhutan joined BIMSTEC on 8 February 2004.
Areas of Cooperation

2. Initially, BIMSTEC had identified 14 priority areas of cooperation. As agreed in the fifth BIMSTEC Summit held in Colombo in 2022, they are now consolidated into following 7 core sectors and 14 sub-sectors for strengthened regional cooperation:
   I) Trade, Investment and Development [1 Sub-Sector: Blue Economy], Lead Country: Bangladesh
   II) Environment and Climate Change [1 Sub-Sector: Mountain Economy], Lead Country: Bhutan
   III) Agriculture and Food Security [2 Sub-sectors: Agriculture; Fisheries and Livestock], Lead Country: Myanmar
   IV) People-to-People Contact [4 Sub-sectors: Culture; Tourism; Poverty Alleviation; and People-to-People Contact Forums], Lead Country: Nepal
   V) Security [3 Sub-sectors: Energy; Disaster Management; and Counter Terrorism and Transnational Crime], Lead Country: India
   VI) Science, Technology and Innovation [3 Sub-sectors: Technology; Health; and Human Resource Development], Lead Country: Sri Lanka
   VII) Connectivity, Lead Country: Thailand

Institutional Mechanisms

3. BIMSTEC Summit is the highest policymaking body in BIMSTEC process and is comprised of Heads of State/Government of Member States. It deliberates and takes decisions on vital policy questions related to the organization; addresses emergency situations; decides on admission of new Member or observer; and authorizes to establish or dissolve organizational bodies/entities. The Summit is organized once every two years by a Member State holding BIMSTEC Chairship. So far, five Summits have been held in 2004 (Bangkok), 2008 (New Delhi), 2014 (Nay Pyi Taw), 2018 (Kathmandu) and 2022 (Colombo) respectively. The chairmanship of BIMSTEC rotates among Member States according to alphabetical order of their English names. Thailand is the current Chair of BIMSTEC who took over BIMSTEC Chairship after the Colombo Summit in March 2022. Nepal was the Chair from 2014 to August 2018.
   The erstwhile Rt. Hon. Prime Minister of Nepal Mr. K. P. Sharma Oli chaired the fourth BIMSTEC Summit held in Kathmandu on 30-31 August 2018 under the theme “Towards a Peaceful, Prosperous and Sustainable Bay of Bengal Region”. The Summit deliberated on the existing status of cooperation under BIMSTEC and took a number of decisions to gear up the regional process. During the Summit, MoU for establishment of BIMSTEC Grid Interconnection, 2018 was signed.
   The Fifth BIMSTEC Summit was held in and from Colombo, Sri Lanka, on 30 March 2022 in a hybrid mode under the theme “BIMSTEC- Towards a Resilient Region, Prosperous Economies, and Healthy People”. Attended by the Nepali delegation led by Rt. Hon. Mr. Sher Bahadur Deuba, then Prime Minister of Nepal, the Summit adopted the BIMSTEC Charter that entered into force on 20 May 2024. In addition, BIMSTEC Convention on Mutual Legal Assistance in Criminal Matters; MoU on the Establishment of BIMSTEC Technology Transfer Facility; MoU on Mutual Cooperation between Diplomatic Academies/Training Institutions of BIMSTEC Member States; and BIMSTEC Master Plan for Transport Connectivity were signed during this Summit.
4. Ministerial Meeting (MM) is yet another significant policy-making body within BIMSTEC, comprising the External/Foreign Ministers of Member States. Its Meeting is held annually. It performs the functions of coordinating overall cooperation; preparing the Summit; implementing agreements and decisions of the Summit; liaising with Sectoral Ministerial bodies to enhance policy coherence and efficiency; appointing Secretary General (Ambassadorial level) and approving the budget of BIMSTEC Secretariat, Centres/Entities, among others. The 19th BIMSTEC Ministerial Meeting (MM) was held on 09 March 2023 virtually in Bangkok, Thailand. Prior to the fifth Summit, the Eighteenth Ministerial Meeting was held on 29 March 2022, preceded by the Twenty Second Session of the BIMSTEC Senior Officials Meeting (28 March 2022).
5. BIMSTEC Sectoral Ministerial Meeting comprises of relevant Ministers of line ministries who are mandated to carry out regional cooperation activities in their respective sectors. It meets as and when necessary to be hosted and chaired by Lead Country of a particular sector. This body carries out the functions such as implementing agreements and decisions of the Summit in their respective purview; strengthening cooperation in their sectors for realizing Charterial objectives; presenting reports and recommendations to BIMSTEC Ministerial Meeting for consideration of the Summit; and assessing, approving and taking actions on deliberations of BIMSTEC Sectoral Senior Officials" Meeting.
6. Senior Officials" Meeting (SOM) precedes the Ministerial Meeting and is represented by Senior Officials (Foreign Secretaries/Secretaries/appropriate officials) as nominated by the Member States. Its Meeting is held once a year. It executes the functions such as preparing for and implementing agreement, decisions of BIMSTEC Ministerial Meeting; coordinating with Sectoral Bodies in sectors (with no Ministerial Body); approving and taking actions on deliberations of BIMSTEC Permanent Working Committee; and undertaking other functions as assigned.
   The SOM reports to the Ministerial Meeting. Till date, 23 Sessions of SOM have been held, latest one virtually in Bangkok, Thailand on 08 March 2023. Nepal convened Seventeenth, Eighteenth and Nineteenth Session of SOM in Kathmandu in February 2017, August 2017 and August 2018 respectively. Senior Officials" Meeting (SOM) is also divided into the area of Foreign Affairs (SOM) and the area of Trade and Economic Affairs (Senior Trade/Economic Officials" Meeting - STEOM) which are headed by the Senior Officials of foreign affairs, and trade and economic affairs respectively.
7. BIMSTEC Permanent Working Committee (BPWC) is a body of National Focal Points (Joint Secretaries/Director-General of the Ministry of Foreign Affairs) at appropriate senior level of Member States. The Fourth Summit held in Kathmandu in 2018 decided to establish BPWC and its Meeting is held at least twice a year. It discusses overall matters including administrative and budgetary matters of BIMSTEC Secretariat and Centres/entities; prepare organizational calendar of activities; prioritizes, rationalizes BIMSTEC activities; prepares for and reports to the Senior Officials" Meeting; and undertakes such other functions. The current Charter has recognized BPWC as one of important Charter bodies of BIMSTEC. The Seventh BPWC Meeting was held on 1 August 2024 in a virtual mode to undertake the preparatory works for upcoming sixth BIMSTEC Summit to be held in Bangkok on 1-4 September 2024.
8. BIMSTEC Secretariat is an administrative body responsible for over-all coordination related to the activities of the organization. Following the signing of MoA on the Establishment of Permanent BIMSTEC Secretariat in the Fifth BIMSTEC Summit held in Colombo in 2022, it was inaugurated in Dhaka on 13 September 2014. The Secretariat is headed by Secretary General who is appointed for a non-renewal three-year tenure by the Ministerial Meeting upon recommendation of Senior Officials" Meeting as per the nomination of a Member State in an alphabetical order. S/he holds an ambassadorial rank.
   The Secretary General is entrusted with the responsibilities of coordinating, facilitating and monitoring progress in implementing BIMSTEC agreements, decisions; representing BIMSTEC in meetings with external parties; and submitting annual report on the works of the organization to the Ministerial Meeting, among others. Seven Directors- one from each Member State- and other administrative staff assist the Secretary General in administering the day-to-day functions of the organization. H.E. Mr. Indra Mani Pandey, a senior diplomat from India, is the current Secretary General of BIMSTEC who took over the assignment in that capacity on 04 January 2024. Earlier, H.E. Mr. Sumith Nakandala from Sri Lanka served as the first Secretary General for a tenure from 10 August 2014 to 14 September 2017 while H.E. Mr. M. Shahidul Islam from Bangladesh (21 September 2017 to 20 September 2020) and H.E. Mr. Tenzin Lekphell from Bhutan (6 November 2020 to 5 November 2023) served as the second and third Secretaries-General respectively.
9. BIMSTEC Business Forum and Economic Forum are two important forums under the Senior Trade/Economic Officials" Meeting (STEOM) that ensure active participation of the private sector in BIMSTEC activities. In Business Forum, private sector representatives from BIMSTEC Member States meet and discuss various issues including trade and investment. The outcomes of the Business Forum are presented to the Economic Forum where the private sectors have an opportunity to discuss with representatives from the public sector of the Member States. The Economic Forum reports the outcomes of its meetings to the STEOM.
   Cooperation Initiatives in BIMSTEC
10. People-to-People Contact Sector: Nepal is the lead country for coordinating overall activities in the People-to-People Contact Sector, with Culture; Tourism; Poverty Alleviation; and People-to-People Contact Forums as its sub-sectors.
    i) Culture
    Recognizing the pluralistic nature of societies, shared cultural heritage and rich diversity of languages, arts, crafts, and traditions, culture was included as one of sub-sectors of BIMSTEC cooperation in December 2005 as endorsed by the 8th BIMSTEC Ministerial Meeting. Buddhism remains a connecting thread among the peoples of the region in this regard. The enhanced collaboration in this area is crucial to further strengthen historic cultural ties and promote mutual respect, tolerance for cultural diversity in the region. Institutional mechanisms in Culture Sub-Sector are:
    a) BIMSTEC Culture Ministers" Meeting
    b) BIMSTEC Expert Group on Cultural Cooperation
    c) BIMSTEC Cultural Industries Commission and BIMSTEC Cultural Industries Observatory
    ii) Tourism
    The Second BIMSTEC Ministerial Meeting (18-19 December 1998, Dhaka) identified tourism as one of the areas of cooperation in BIMSTEC. The tourism potentials are substantial, given the region"s cultural diversity and natural beauty. The Fourth BIMSTEC Summit emphasized on developing and promoting the Buddhist Tourist Circuit, Temple Tourist Circuit, ancient cities trail, eco-tourism, and medical tourism, among others. Nepal organized the "BIMSTEC Tourism Fair 2023" in Lumbini on 11-13 May 2023 together with the Buddhist International Travel Mart to commemorate the Silver Jubilee Celebration of the establishment of BIMSTEC. Institutional mechanisms in Tourism Sub-Sector are:
    a) BIMSTEC Tourism Ministers" Roundtable
    b) BIMSTEC Working Group on Tourism
    c) BIMSTEC Network of Tour Operators
    iii) Poverty Alleviation
    Initially, Poverty Alleviation was not included in the Sectors of cooperation within BIMSTEC. The 19th BIMSTEC Ministerial Meeting (09 March 2023, Bangkok) endorsed inclusion of poverty alleviation as a sub-sector under People-to-People Contact upon recommendation by the 23rd Session of BIMSTEC SOM held virtually 08 March 2023. Institutional Mechanisms in this Sub-Sector are:
    a) BIMSTEC Ministerial Meeting on Poverty Alleviation
    b) BIMSTEC Senior Officials" Meeting on Poverty Alleviation
    c) BIMSTEC Expert Group Meeting on Poverty Alleviation
    iv) People-to-People Contacts Forums
    People-to-People Contact sector was included as an area of cooperation during the First BIMSTEC Summit held on 31 July 2004 in Bangkok, Thailand. BIMSTEC Network of Policy Think Tanks (BNPTT), BIMSTEC Visa Scheme, and BIMSTEC forums for parliamentarians, academia, research institutes, cultural organizations, and the media community were included to promote people-to-people contact at various levels in the Bay of Bengal region by creating a deeper understanding and trust across the region. Institutional mechanisms in this sub-sector are:
    a. BIMSTEC Network of Policy Think Tanks (BNPTT)
    b. Association of BIMSTEC Speakers and Parliamentarians
    c. BIMSTEC Expert Group on VISA Matters
11. Trade, Investment and Development: With high prospects of intra-regional trade, investment and economic partnerships among Member States in the region, this sector has acquired great priority ever since the genesis of BIMSTEC. Bangladesh is the Lead Country for regional cooperation in this sector, comprising Blue Economy as its sub-sector.
    The framework agreement for Free Trade Agreement (FTA) was agreed upon in 2004 with the objective of (i) strengthening and enhancing economic, trade and investment cooperation among the Parties; (ii) progressive liberalization and promotion of trade in goods and services, creating a transparent, liberal and facilitative investment regime; (iii) exploring new areas and developing appropriate measures for closer cooperation among the Parties; and (iv) facilitating a more effective economic integration of the least developed countries in the region, and bridging the development gap among the parties.
    Trade Negotiating Committee (TNC) was established as an institutional arrangement to conduct the negotiations as set out in the BISMTEC FTA. The TNC is currently engaged in the negotiations to conclude the following Constituent Agreements/Protocols which would form integral part of the BIMSTEC FTA:
     Agreement on Trade in Goods of the Framework Agreement on the BIMSTEC FTA;
     Agreement on Trade in Services of the Framework Agreement on the BIMSTEC FTA;
     Agreement on Investment of the Framework Agreement on the BIMSTEC FTA;
     Agreement on Cooperation and Mutual Assistance in Customs Matters for the BIMSTEC FTA;
     Agreement on Rules of Origin and Operational Certification Procedures for the BIMSTEC FTA;
     Agreement on Trade Facilitation for the Framework Agreement on BIMSTEC FTA;
     Second Protocol to amend the Framework Agreement on the BIMSTEC Free Trade Area;
    The mechanisms in this Sector are:
    a) Trade and Economic Ministerial Meeting (TEMM)
    b) Senior Trade and Economic Officials" Meeting (STEOM)
    c) Trade Negotiating Committee (TNC) and its 7 Working Groups (Working Group on Trade in Goods; Working Group on Rules of Origin; Working Group on Trade in Services; Working Group on Investment; Working Group on Legal Experts; Working Group on Customs Cooperation; and Working Group on Trade Facilitation;)
    d) BIMSTEC Economic Forum
    e) BIMSTEC Business Forum
12. Environment and Climate Change: Bhutan leads regional cooperation in this Sector, comprising Mountain Economy as its sub-sector. BIMSTEC region is vulnerable to natural calamities such as floods, earthquakes and cyclones that cause heavy damages to human lives and property in the region. Equally vulnerable is this region to the adverse impact of Climate Change. The melting of Himalayan Glaciers, Glacial Lake Outburst Floods (GLOFS), erratic rainfall, floods and landslides in the plains and hills, rise in sea level are not only posing threats to our sustainable development efforts but also to our lives and property. It is therefore imperative to enhance cooperation in the field of Environment and Climate Change to ensure a resilient and prosperous Bay of Bengal region. Institutional mechanisms in this sector are:
    a) Joint Working Group on Environment and Climate Change
    b) Intergovernmental Expert Group to develop an action plan for Mountain Economy
13. Agriculture and Food Security: Agriculture largely constitutes a mainstay of BIMSTEC economies and the livelihood of its people. Cooperation on sustainable agriculture and food security is significantly beneficial to all Member States. Intensified cooperative efforts have already been in effect to increase productivity and agricultural yields in the region. Myanmar is the Lead Country for promoting and enhancing regional collaboration in this sector, comprising agriculture; and Fisheries & Livestock as its sub-sectors. Institutional mechanisms in this sector include:
    a) BIMSTEC Ministerial Meeting on Agriculture (BAMA) and the BIMSTEC Senior Officials" Meeting on Agriculture (SOM-A)
    b) BIMSTEC Expert Group Meeting on Agricultural Cooperation (EGMAC)
    c) BIMSTEC Expert Group on Fisheries and Livestock
14. Security: Due to looming threats of terrorism, increasing trends of transnational organized crime of different kinds, security has featured significantly on the agenda of regional cooperation among BIMSTEC Member States. Both traditional and non-traditional security challenges continue to pose threats to peace and stability in the BIMSTEC region. BIMSTEC Member States have expressed their strong commitment to combat terrorism in all its forms and manifestations. Concrete measures have been undertaken to step up cooperation and coordination among law enforcement, intelligence and security organizations in this regard.

India is the Lead Country of this sector, comprising Counter Terrorism and Transnational Crime (CTTC); Energy; and Disaster Management as its sub-sectors. Institutional mechanisms in this sector include:
a) BIMSTEC National Security Chiefs Meeting
b) BIMSTEC Joint Working Group Meeting on Counter Terrorism and Transnational Crime
c) BIMSTEC Sub-Group on Prevention of Illicit Trafficking in Narcotics Drugs, Psychotropic Substances and Precursor Chemical
d) BIMSTEC Sub-Group on Intelligence Sharing
e) BIMSTEC Sub-Group on Legal and Law Enforcement Issues
f) BIMSTEC Sub-Group on Anti- Money Laundering and Combating the Financing of Terrorism
g) BIMSTEC Sub-Group on the Cooperation on Countering Radicalization and Terrorism
h) BIMSTEC Sub-Group on Human Trafficking and Illegal Migration

15. Science, Technology and Innovation: is another important area of cooperation for shared benefits of BIMSTEC Member States. The Memorandum of Association (MoA) on the Establishment of the BIMSTEC Technology Transfer Facility (TTF) was signed in the fifth BIMSTEC Summit held in Colombo in 2022. The TTF aims at coordinating, facilitating and strengthening cooperation in technology transfer field among the BIMSTEC Member States by promoting technology transfer, sharing of experiences and capacity building programmes. The process to establish TTF in Sri Lanka is at its final stage. Sri Lanka is the Lead Country of this sector, comprising Technology; Health; and Human Resource Development as its sub-sectors. Institutional mechanisms in this sector include:
    a. Expert Group on Science, Technology and Innovation (STI)
    b. BIMSTEC Technology Transfer Facility (TTF)
    c. Expert Group on Public Health
    d. BIMSTEC Task Force on Traditional Medicine (BTFTM)
    e. Expert Group on Human Resource Development
16. Connectivity: is a crucial pillar of cooperation to bring about economic dynamism in BIMSTEC region. Enhanced connectivity by road, rail, air and maritime is a great enabler to accelerate economic growth, development and prosperity as well as increased people-to-people contacts in the region. BIMSTEC Master Plan for Transport Connectivity, signed during the fifth BIMSTEC Summit in Colombo in 2022, envisions creating a seamlessly interconnected Bay of Bengal region for shared regional peace, stability and sustainability. Thailand is the Lead Country for strengthening regional cooperation in this sector. Institutional mechanisms in this Sector are:
    a) BIMSTEC Transport Connectivity Work Group
    b) BIMSTEC Working Group on Agreement on Maritime Transport Cooperation
    c) BIMSTEC Working Group on Motor Vehicles Agreement
    Regional Centres
17. There are two regional centres established under BIMSTEC as follows:
    a) BIMSTEC Energy Centre (https://bimstec.org/bimstec-energy-centre)
    b) BIMSTEC Centre for Weather and Climate (https://bimstec.org/bimstec-centre-for-weather-and-climate)
    Necessary preparations are underway to establish BIMSTEC Cultural Industries Observatory and BIMSTEC Technology Transfer Facility in Thimpu, Bhutan and Colombo, Sri Lanka respectively soon.
    Convention/MoUs/Agreements concluded
18. The followings are a list of Convention, MoUs and agreements concluded in BIMSTEC to carry forward BIMSTEC process:
    i. Bangkok Declaration, 1997
    ii. Framework Agreement on the BIMSTEC Free Trade Area, 2004
    iii. Protocol to the Framework Agreement on BIMSTEC free Trade Area, 2004
    iv. BIMSTEC Convention on Cooperation in Combating International Terrorism, Transnational Organized Crime and Illicit Drug Trafficking, 2009
    v. Memorandum of Association (MoA) among the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Member Countries for Establishment of BIMSTEC Energy Centre, 2011
    vi. Memorandum of Understanding (MoU) on the Establishment of the BIMSTEC Cultural Industries Commission (BCIC) and BIMSTEC Cultural Industries Observatory (BCIO), 2014
    vii. Memorandum of Association (MoA) on the Establishment of the BIMSTEC Permanent Secretariat, 2014
    viii. Memorandum of Association (MoA) among the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Member Countries Concerning Establishment of a BIMSTEC Centre for Weather and Climate, 2014
    ix. Memorandum of Understanding (MoU) for Establishment of the BIMSTEC Grid Interconnection, 2018
    x. The Memorandum of Understanding on Mutual Cooperation between Diplomatic Academies/ Training Institutions of BIMSTEC Member States, 2022
    xi. The BIMSTEC Convention on Mutual Legal Assistance in Criminal Matters, 2022
    xii. BIMSTEC Charter, 2022 (entry into force on 20 May 2024)
    xiii. Memorandum of Association on the Establishment of BIMSTEC Technology Transfer Facility, 2022
    xiv. BIMSTEC Master Plan for Transport Connectivity, 2022

BIMSTEC Foreign Ministers" Retreat
Thailand, the current Chair of BIMSTEC organized first BIMSTEC Foreign Minister"s Retreat on 17 July 2023 in Bangkok, Thailand. The erstwhile Foreign Minister Mr. N.P. Saud attended the Retreat.
India hosted the second Retreat of Foreign Ministers of BIMSTEC Member States on 11-12 July 2024 in New Delhi. This Retreat reviewed status of progress in agreed areas of cooperation within BIMSTEC and discussed organizational reform agendas as well as regional and global issues of mutual interests in a more cordial and informal fashion. Foreign/External Affairs Ministers: Dr. S. Jaishankar (India), Dr. Hasan Mahmud (Bangladesh), Mr. Lyonpo D.N. Dhungyel (Bhutan), Mr. Maris Sangiampongsa (Thailand); Mr. Tharaka Balasuriya, State Minister of Foreign Affairs of Sri Lanka and Ms. Sewa Lamsal, Foreign Secretary of Nepal, attended the Retreat.
On the occasion, the visiting Foreign Ministers and Heads of delegation of BIMSTEC Member States had a joint call on Shri Narendra Modi, Prime Minister of India, in his office in New Delhi.
The Retreat at the level of BIMSTEC Foreign Ministers serves as a platform for exchanging ideas and building on collective efforts to foster deeper regional cooperation, mutual understanding, friendship and solidarity among Member States for shared benefits.

Regional Organizations Division
Ministry of Foreign Affairs
August 2024