In spite of bridging South Asia and Southeast Asia, the seven-member Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) has failed to emerge as a powerful economic bloc due to a lack of political will and trade barriers, economists say.

The combined economic size of Bimstec members stands at around $4.7 trillion, highlighting the bloc's vast potential for boosting intra-regional trade.

However, referring to the Association of Southeast Asian Nations (Asean), analysts said Bimstec's intra-regional trade accounts for just 7 percent of its total trade, compared to 25 percent for Asean.

"The absence of a well-defined trade framework is keeping Bimstec from realising its full potential," said Selim Raihan, a professor of economics at the University of Dhaka, at a policy dialogue in Dhaka yesterday.

Speakers at the event, titled Regional Cooperation and Development: Curtain Raiser to the Sixth BIMSTEC Summit, said that unlike Asean, which has established free trade policies and value chain integration, Bimstec struggles with fragmented trade arrangements and weak institutional frameworks.

They urged Bimstec members to learn from Asean's success in fostering regional trade and economic integration.

Bimstec was established in 1997 to promote economic and technical cooperation. Its members are Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.

Raihan, also the executive director of the South Asian Network on Economic Modeling (Sanem), said, "While an FTA framework was signed in 2004, there has been little tangible progress due to reluctance among member states and prolonged negotiations over tariff reductions and sensitive lists."

Sanem and the Bimstec Secretariat jointly organised the event at Sanem's Dhaka office.

The economist said that the lack of a comprehensive FTA, along with non-tariff barriers and protectionist policies, continues to hinder regional economic integration.

Globalisation is slowing and regionalism remains a viable strategy—yet South Asia has not fully capitalised on it, said Zaidi Sattar, chairman of Policy Research Institute (PRI).

"Bimstec must embrace strategic regionalism, where countries within the bloc work together to offset global trade uncertainties," he said.

However, the economist said, differences in political will have long delayed trade integration, with member states prioritising nationalistic economic policies over collective growth.

Sattar said delays in implementing a Bimstec charter, which took 25 years to finalise, reflect the lack of urgency among the members.

Limited funding and bureaucratic inefficiencies within Bimstec Secretariat have further stymied progress, he pointed out.

Another critical challenge is a lack of infrastructure to facilitate smooth trade, he said.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), stressed on improving transport, logistics, and digital connectivity.

"Bimstec requires an estimated $120 billion annually in infrastructure investment to bridge existing gaps. Without seamless transport and logistics networks, trade efficiency remains low," Rahman said.

A Bimstec master plan for transport connectivity, if fully implemented, could significantly facilitate trade, he said.

However, he said financial constraints and slow project implementation have hampered progress.

Indra Mani Pandey, secretary general of Bimstec, acknowledged these challenges but remained optimistic about future engagements.

"Despite political differences, member states continue to negotiate and explore economic collaboration. Bangladesh, as the current chair, is playing a crucial role in advancing discussions," he said.

M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, pointed out that foreign direct investment (FDI) trends were shifting and Bimstec needed to establish a stronger investment framework.

"While Asia is the leading recipient of global FDI, South Asia lags behind East Asia. Protectionist policies, regulatory hurdles, and a lack of investment facilitation make it difficult for Bimstec countries to attract meaningful FDI," he said.

He emphasised the need for investment-driven cooperation, particularly in sustainable sectors such as agriculture, water, and sanitation.

"Bimstec needs to focus on a well-structured economic corridor, boosting supply chain integration and implementing digital solutions to streamline trade," said Prabir De, a professor at the Research and Information System for Developing Countries.

The upcoming 6th Bimstec Summit is expected to address some of these concerns, particularly trade liberalisation, connectivity, and institutional strengthening.

However, the experts warned that without concrete commitments from member states, the bloc risks remaining stagnant.

"Political will is key to unlocking Bimstec's true potential. Without strong leadership and a commitment to collective growth, the region will continue to lag behind in the global economic race," said Mustafizur Rahman.