NEW DELHI, India: India will propose to establish a South Asian Development Bank for financing infrastructure development in the region at the upcoming South Asia Free Trade Area (SAFTA) ministerial meeting in Bhutan, an Indian government official said.
A meeting of trade ministers from the South Asian Association of Regional Cooperation (SAARC) countries including India, Nepal, Sri Lanka, Pakistan, Bangladesh, Bhutan, Afghanistan, and Maldives will begin in Bhutan’s capital Thimpu on Thursday.
“Unlike the BRICS Development Bank which will fund all developing countries, the proposed South Asian Development Bank will exclusively focus on South Asia,” the official said.
The official said that the Indian commerce minister Nirmala Sitharaman is likely to discuss the proposal with all South Asian partners at the meeting.
“To get over the problem of financing the venture, the development bank will welcome investments from third countries who would also get voting rights in proportion to their contribution,” the official said.
The multilateral agencies such as the Asian Development Bank (ADB) and the World Bank would also be asked to pitch in and join as observers.
“Smaller countries that cannot access funds from multilateral agencies such as ADB and World Bank because of tough riders can get it from the regional bank. It will result in overall development of entire South Asia,” the official added.
