The forthcoming summit will also take initiative to streamline various proposed funds into a single fund with an initial capital of US $300 million, a senior official of the Ministry of Foreign Affairs told diplomatic correspondents yesterday.

The proposed "South Asian Poverty Alleviation Fund" will have different wings like economic wing, social wing and infrastructure wing.

South Asian Development Fund with only US$ 6 million in the coffers has so far financed about 10 feasibility studies of some poverty-alleviation projects, but those projects could not be launched due to lack of initiative from the private sector.

As the new Saarc chair, Bangladesh will concentrate on raising fund by way of contributions from the member-states, individual philanthropists or donor agencies for implementing projects to alleviate poverty since a paltry amount of six million dollars is not enough to run any project, the foreign ministry official said.

FAO would finance some smaller projects in animal-husbandry sector to deal with Avian Flu and foot and mouth disease of the cow in the Saarc region, he said.

Besides, there are some smaller projects financially and technically assisted by Japan, EU, UNDP, Unctad, Unicef, Asean, Escap and APTC.

There are 10 Saarc centres on various matters in the seven capitals.

Of them, Saarc Agriculture Information Centre and Saarc Meteorological Research Centre are in Dhaka.

The Saarc information ministers at a recent meeting decided to set up a Saarc Media Development Fund in Kathmandu with an initial fund of $100,000, an official said, adding that Bangladesh has also proposed a "Fund for Differently Able Persons".

Earlier Saarc officials finalised two draft agreements concerning customs management and avoidance of double taxation, while there are disagreement about the place for Saarc arbitration centre and some minor issues regarding the protection of investment, sources said.

More discussion will be required regarding the establishment of the Saarc Arbitration Centre as Bangladesh, India and Pakistan expressed willingness to set up the centre in their capitals.

Besides, negotiations have not yet completed on the question of most favoured-nation status under an article of the agreement entitled Promotion and Protection of Investment.

Meanwhile, the drafts of the agreements on cooperation in avoidance of double taxation and Saarc arbitration centre will be placed in tomorrow's weekly regular cabinet meeting for approval, foreign ministry sources said.

The cabinet earlier approved cooperation in customs administration.

CHINA'S PROPOSAL TO BE A DIALOGUE PARTNER OF SAARC
The upcoming Dhaka summit may consider China's plea for becoming a dialogue partner of the South Asian Association for Regional Cooperation (Saarc).

Last year China formally conveyed its interest to the Saarc Secretariat.

A senior official of the foreign ministry yesterday told diplomatic correspondents that this month's Saarc summit "may take up China's formal application for consideration".

China is already a dialogue partner of the Association of South East Asian Nations (Asean) and the European Union. Dialogue partners usually provide financial and technical support.

Asked if Afghanistan wanted to be a member of Saarc, the foreign ministry official said that he was not officially aware of it.

The 11th Saarc summit in Kathmandu had decided to formulate some criteria for new membership or observer status in the seven-nation forum, but there was no progress.

However, there are some organisations linked with Saarc activities that have been given the observer status.

In reply to a question, the official said that Iran has also expressed its desire to be an associate member of Saarc, but the country is yet to communicate formally.