Summary
BIMSTEC Policy Dialogue on Regional Cooperation and Development: Curtain Raiser to the Sixth BIMSTEC Summit
12 March 2025 | BIMSTEC Secretariat, Dhaka
The BIMSTEC Secretariat, in collaboration with the South Asian Network on Economic Modeling (SANEM), organized a BIMSTEC Policy Dialogue titled “Regional Cooperation and Development: Curtain Raiser to the Sixth BIMSTEC Summit” on March 12, 2025, at the BIMSTEC Secretariat in Dhaka. The event was chaired by Indra Mani Pandey, the BIMSTEC Secretary General. This dialogue brought together key stakeholders and experts to discuss the future trajectory of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and address regional challenges and opportunities in the lead-up to the Sixth BIMSTEC Summit.
The session commenced with remarks from Indra Mani Pandey, who emphasized the significant challenges faced by South Asian countries in the current geopolitical landscape. He stressed the importance of regional cooperation and the need for equal participation from all BIMSTEC member states to ensure effective policy implementation. Pandey also underlined the necessity of political commitment from member nations to drive forward the BIMSTEC agenda and foster sustainable cooperation.
Dr. Selim Raihan, Executive Director of SANEM and Professor at the University of Dhaka, presented on “The New World Order and Global Challenges, and BIMSTEC”. He highlighted the growing role of BIMSTEC in addressing emerging global challenges, particularly in the context of evolving trends in global trade and investment. Raihan discussed the increasing uncertainty in global markets, the efforts of Bangladesh to integrate with the green trade agenda, and the need to strengthen BIMSTEC’s institutional framework. He also emphasized the need for sustained political engagement to overcome existing implementation gaps within BIMSTEC.
Dr. Paras Kharel, Executive Director of South Asia Watch on Trade, Economics and Environment (SAWTEE), Kathmandu, Nepal, spoke about the challenges arising from regional conflicts and their impact on BIMSTEC. He noted that national interests often evolve, and the success of BIMSTEC depends on strong bilateral ties, particularly between Bangladesh, India, and Myanmar. He cautioned that without mutual respect and cooperation, BIMSTEC’s future could be at risk. He also raised concerns about the security issues within the region and questioned whether BIMSTEC could offer tangible benefits compared to other regional initiatives.
Dr. Nisha Taneja, Professor at the Indian Council for Research on International Economic Relations (ICRIER), addressed the slow progress of BIMSTEC and its potential as a bridge between SAARC and ASEAN. She pointed out the lack of a clear definition of cooperation and the institutional challenges that hinder BIMSTEC’s growth. She urged for prioritizing transport infrastructure and land connectivity and for more dynamic and frequent meetings to address tariff issues. Taneja also discussed investment patterns, particularly noting the dominance of Indian-Thai trade, and called for a more sustained investment framework within BIMSTEC.
Mr. Kazi Faisal Bin Seraj, Country Representative of The Asia Foundation in Bangladesh, highlighted BIMSTEC’s unique position in bridging the strengths of both SAARC and ASEAN. He advocated for a balanced approach that leverages the benefits of both organizations to maximize regional cooperation.
Dr. Sineenat Sermcheep, Director of the ASEAN Studies Centre at Chula University, Bangkok, emphasized the role of connectivity in economic integration. She pointed out that a robust digital platform is essential for sustaining regional cooperation and discussed the role of Free Trade Agreements (FTAs) in facilitating smoother trade transactions. She also suggested that BIMSTEC member states deepen collaboration in digital skills and technology.
Ambassador Sumith Nakandala, Former Secretary General of BIMSTEC, discussed the importance of the Motor Vehicle Agreements and recommendations from the Bangkok summit. He acknowledged the transitional period affecting the region’s economic, political, and military sectors and stressed the need for a reevaluation of regional integration strategies. He highlighted the lack of political sustainability within BIMSTEC and emphasized that the benefits of cooperation must reach every citizen within the Bay of Bengal region.
Dr. Prabir De, Professor at the Research and Information System for Developing Countries (RIS), New Delhi, focused on three key areas: reaching consensus, addressing implementation challenges, and strengthening financial connectivity. He advocated for the integration of digital payment systems and highlighted the importance of think tanks and universities in BIMSTEC’s future development. He also underscored the need for trade facilitation and a more cohesive financial infrastructure within the region.
Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), expressed concern over the tendency to prioritize vision documents over practical implementation and noted the lack of engagement with political parties. He questioned how BIMSTEC could facilitate Bangladesh’s smooth transition from LDC graduation and emphasized the importance of coordinated policy choices. Rahman suggested that BIMSTEC could act as a “single window” to enhance cross-border trade and improve competitiveness by reducing transaction costs.
Dr. M Masrur Reaz, Chairman and Founder of Policy Exchange Bangladesh, shared insights regarding BIMSTEC’s potential to capitalize on Asia’s comparative FDI advantage and increasing FDI flows into SDG-sensitive sectors. He discussed the importance of strengthening the BIMSTEC Secretariat’s capacity and leveraging the region’s green economy.
Dr. Zaidi Sattar, Chairman of the Policy Research Institute (PRI), expressed optimism about BIMSTEC’s future despite the uncertainties and tariff barriers. He highlighted the importance of regional cooperation and the integration of global value chains. Sattar pointed out that while trade blocs have declined, overall trade has not, and he advocated for strategic regional diplomacy and trade openness. He also emphasized the need for value chain integration in Asia and closer cooperation between BIMSTEC and ASEAN.
The dialogue continued with contributions from commercial bodies, including Md. Zafar Iqbal, Head of International Affairs at the FBCCI, who stressed the need for greater engagement with the business community within BIMSTEC. Md. Saidul Islam, Additional Secretary General of MCCI, recommended that BIMSTEC countries collaborate on utilizing the Blue Economy’s maritime resources. AHM Moniruzzaman, Additional Executive Secretary of DCCI, urged the implementation of previously adopted measures, particularly in strengthening B2B relations and partnerships within the RCEP region.
Representatives from research organizations also contributed valuable perspectives. Dr. Md Moniruzzaman from BIGM suggested intra-BIMSTEC cooperation to implement FTAs more effectively. Sultan Mahmud from BFTI highlighted the structural inefficiencies in intra-regional trade and proposed creating a BIMSTEC commerce platform. Dr. Azreen Karim from BIDS emphasized the importance of accelerating energy trade and operationalizing BIMSTEC to foster better trade and investment opportunities.
In his concluding remarks, Indra Mani Pandey thanked the participants for their contributions and ideas, emphasizing that BIMSTEC should not be compared with other organizations since its mechanisms take time to evolve. He affirmed that the organization’s non-political nature offers a unique advantage, enabling BIMSTEC to avoid political conflicts while promoting regional cooperation. Pandey expressed optimism about the future of BIMSTEC and reiterated that strengthening B2B relations, digital connectivity, and external partnerships remain priorities. He also highlighted ongoing efforts to establish a chamber for enhancing regional collaboration and capacity-building initiatives, particularly in collaboration with ITU.
Dr. Selim Raihan wrapped up the session by thanking all the speakers and participants for their valuable insights, which set the stage for continued dialogue and cooperation leading to the Sixth BIMSTEC Summit.