The stage is set for today's opening of the twice-deferred Saarc Summit which is expected to outline a "new vision" for addressing most challenging issues like terrorism, poverty alleviation and regional cooperation, and chart out a roadmap for economic integration of the South Asian countries.

Leaders will figure out ways to pull millions of people out of abject poverty, create a regional trade bloc, combat terrorism and deal more effectively with the region's natural disasters. They will also form a vision for Saarc in its third decade.

Dhaka is ready to hold the 13th summit of the South Asian Association for Regional Cooperation (Saarc) comprising Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka amid tight security.

The city has been put under a thick security blanket through deployment of 40,000 police and army personnel. It has donned a festive look as the main thoroughfares from Zia International Airport to Sheraton Hotel have been decorated beautifully with flags of Saarc countries, banners inscribed with welcome slogans and portraits of the leaders.

The annual summit, largest gathering of South Asian leaders, was originally scheduled to take place on January 9-11, but it was cancelled after last December's tsunami disaster that battered three Asian countries -- India, Sri Lanka and the Maldives. Rescheduled for February 6-7, it was postponed again at the last minute after India pulled out citing security concerns in Bangladesh and the Royal coup in Nepal.

Prime Minister Khaleda Zia, who will hold the Saarc chair for the second time today, is expected to emphasise the importance of a new commitment from Saarc countries in dealing with issues like poverty alleviation, combined fight against terrorism, economic integration and natural disasters, while pointing out that this region not only has shared boundaries and a history of civilisation but also a shared destiny.

The 13th summit is bringing Prime Minister of India Dr Manmohan Singh, Prime Minister of Pakistan Shaukat Aziz, President of Sri Lanka Chandrika Bandaranaike Kumaratunga, President of the Maldives Maumoon Abdul Gayoom, King of Nepal Gyanendra Bir Bikram Shah Dev, Prime Minister of Bhutan Lyonpo Sangay Ngedup and Prime Minister of Bangladesh Khaleda Zia to the same table.

Gayoom is about to make history by his presence in all the Saarc summits since 1985. The Sri Lankan President will be making her farewell appearance as her term ends through November 17 presidential polls.

Saarc countries are strongly pitching for the Dhaka Summit to send out a clear message that there must be "zero tolerance" for terrorism in any form or manifestation.

Strengthening collective efforts to combat the scourge will be high on the agenda during the summit deliberations. Recent terror strikes in Bangladesh, India and Sri Lanka have brought home the urgent need for working together to deal with the challenge.

Cooperation in the aftermath of natural disasters will also figure prominently on the agenda of November 12-13 summit.

South Asia has been hit by two of the world's worst natural disasters in less than a year. The December 26 tsunami largely affected three countries while the massive Kashmir earthquake just over a month ago is estimated to have killed more than 85,000 people in Pakistan and in Indian Kashmir.

Efforts are also on to include Afghanistan into the association and for allowing China as an observer or a dialogue partner of Saarc. The Dhaka summit has brought unprecedented media attention as about 300 foreign journalists are already in Dhaka to cover the event.

As Saarc is entering its third decade, the leaders are optimistic about reaching an agreement about the South Asian Free Trade Area (SAFTA), the first step in the evolution of Saarc as a regional trade bloc and an economic union.

Under the SAFTA accord, India, Pakistan and Sri Lanka, the region's largest economies, have until the end of 2008 to reduce their tariffs to somewhere between zero and five percent. Bangladesh, Bhutan, Nepal and the Maldives have until 2016 to do so. However, each country will be able to maintain a “sensitive list'' of products on which tariffs will not be reduced.

The agreement would bring to fruition the idea of a free trade area that was first envisaged in Dhaka in 1985 when the group was formed. Considering that SAFTA was seen as a non-starter at one point in time, the current moves are quite significant -- especially in view of political gains foreseen in terms of peace in the region.

South Asia, home to 1.5 billion people (a quarter of the world's population) is moving to boost regional trade by emulating the Association of Southeast Asian Nations (ASEAN) and the European Union (EU).

Annual trade among the seven countries is $5.0 billion which may rise to $14 billion once restrictions are removed, the Federation of Indian Chambers of Commerce and Industry estimates.

Trade among the ASEAN countries is 29 percent, among the EU countries it is 63 percent while it is only four percent among the Saarc countries though the region has immense prospects.

Seventy percent of trade among the South Asian countries is dominated by India, which is barely a five percent of the region's total trading. Saarc members have a 450 million strong middle-class, bigger than the combined population of the USA and Canada or of the EU.

Saarc members have reached a consensus that regional economic integration is more about finding an engine of growth rather than just promoting trade. Political leadership of Saarc is now determined to make SAFTA operational from January 1, 2006.

On the eve of the Saarc summit in Bangladesh, economists here said regional economic integration could generate billions of dollars in new income, employment and trade. Creation of a free trade area is necessary for economic integration and for promoting the region as a trade bloc, they said.

Regional economic cooperation and integration will also make the member countries, especially the smaller ones, more attractive destinations for third-country investments by removing the constraints imposed by a small domestic market.

Economic integration of South Asia could also help the region fight against poverty, the economists observed. The World Bank estimates about half the world's 1.1 billion poor, who earn less than a dollar a day, live in South Asia.

By removing trade barriers, SAFTA will lead to an estimated tripling of the intra-regional trade. This will make South Asia's internal trade more respectable compared to its existing marginal four to five percent share in similar trading by making it possible to trade directly rather than through third countries. It will also lead to cost savings for the region.

A common Saarc transport policy to facilitate movement of goods should also be in place, experts said. The association should take steps to improve communications by roads, railways, waterways, and by air.

Officials here said the 13th summit is expected to provide fresh impetus to regional cooperation with specific focus on implementation of previous commitments and on plans of actions adopted over the past two decades.

Dhaka, the birthplace of Saarc, is hosting the summit for the third time with several proposals for revitalising the association to tackle some of the major challenges of its third decade.

In the context of urgency for economic integration, the 13th Saarc summit will be an important landmark in the history of the seven-nation group as it will culminate in signing of key agreements among the member countries.

It is expected that the summit will provide the member states with a unique opportunity to have a fresh look at the rich and comprehensive Saarc agenda and to prioritise Saarc activities focusing on areas considered vital for achieving the charter objectives that will contribute to tangible improvement of lives of the teeming millions.

The regional grouping now has a number of important prospective agreements ready to be signed, which include customs cooperation, avoidance of double taxation, investment protection and setting up of a Saarc Arbitration Council.

The leaders are likely to endorse Dhaka's proposal of consolidating different funds under Saarc under the umbrella of Saarc Development Fund (SDF) which will have different outlets, one of which will be Saarc Poverty Alleviation Fund. India has already committed to contribute 100 million dollars for the fund. Officials said a Media Development Fund would also be established under the SDF.

In addition to making formal speeches at the summit on November 12, Saarc leaders will have the opportunity to sit together for several times, mainly during the retreat on the concluding day on November 13.

The retreat is considered as one of the most interactive part of the summit as the heads of state and government will sit together with open agendas from 10:30am till 1:30pm.

After the retreat, all the seven leaders will go to Bangabhaban to pay a courtesy visit to President Prof Iajuddin Ahmed.

The leaders will also meet the new Saarc Chairperson Prime Minister Khaleda Zia individually at her office in the afternoon of the first day of the summit when they will discuss bilateral issues.

Saarc leaders have a packed schedule with a number of bilateral meetings being worked out around the summit schedule by the member states.

Khaleda Zia's meetings with her Indian and Pakistani counterparts will be crucial since they will discuss a whole gamut of bilateral issues.

The Indian prime minister is likely to have meetings with Pakistani Prime Minister Shaukat Aziz and his Bangladeshi counterpart Khaleda Zia today.

The summit will adopt a Dhaka Declaration that has been prepared through intensive consultations by senior officials, foreign secretaries and foreign ministers of the member countries for the last four days.

The first Saarc summit was held on December 7-8, 1985 in Dhaka, the second was on November 16-17, 1986 in Bangalore, the third was in Kathmandu on November 2-4, 1987, the fourth was in Islamabad on December 29-31, 1988, the fifth was in Malé on November 21-23, 1990, the sixth was in Colombo on December 21, 1991, the seventh was in Dhaka on April 10-11, 1993, the eighth was in New Delhi on May 2-4, 1995, the ninth was in Malé on May 12-14, 1997, the 10th was in Colombo on July 29-31, 1998, the 11th was in Kathmandu on January 4-6, 2002 and the 12th was in Islamabad on 2-6 January, 2004.