SDF which was established by the heads of the eight SAARC Member States in April 2010 with the aim to promote the welfare of the people of SAARC region, improve their quality of life, and accelerate economic growth, social progress and poverty alleviation in the region.SDF has three Windows i.e. Social, Economic and Infrastructure Window. The Social Window focuses on funding projects on poverty alleviation, improving health and education, and so on. Economic Window funds non-infrastructural projects related to trade and industry development, agriculture and so on. Infrastructural Window funds projects in areas such as energy, power, transportation, etc.
Currently Social Window is in operation and 13 projects are under implementation in SAARC countries. SDF is in the process to operationalize the Economic and Infrastructure Windows in order to provide maximum benefits of SDF for accelerating Economic growth and Infrastructure development in SAARC countries..