As the umbrella regional financial institution for SAARC projects and programmes, SDF is dedicated to promoting regional integration and economic cooperation among the SAARC Member States through project funding and collaboration. Since its establishment in April 2010, our Secretariat in Thimphu, Bhutan, has been at the forefront of these efforts.
Operating across three funding windows – Social, Economic, and Infrastructure – SDF would has over 90 projects approved by the SDF Board and being implemented in all the Member States. These initiatives span various sectors, each aimed at catalyzing sustainable development and fostering regional cooperation.
As a regional financial institution, our mandate is clear: to drive forward the principles of unity and progress within the SAARC community, and promote regional integration and economic cooperation. With each passing year, we embark on new ventures, cultivate partnerships, and implement interventions, to enable SDF to become a more dynamic and robust umbrella-funding institution, amply capable of delivering the benefits of regional engagement to the millions in the region through project-based collaboration. As we navigate the complex landscape of regional development, the trust of our partners makes everything we do possible. We are profoundly grateful for the unwavering support of our valued partners for working together with us to achieve sustainable results through our projects in the Member States.
In 1996, the South Asian Development Fund (SADF) was established by merging the SAARC Fund for Regional Projects (SFRP) and the SAARC Regional Fund. The SADF aimed to support industrial development, poverty alleviation, environmental protection, institutional and human resource development, and the promotion of social and infrastructure development projects across the SAARC region.
However, the existing SADF was found to be insufficient in both the amount of available funds and the scope of its activities. To address these shortcomings and to streamline the funding mechanisms, SAARC Financial Experts convened in September 2005 to review the funding structure for SAARC projects and programs. They recommended restructuring the SADF to avoid the proliferation of sector-specific financing mechanisms. Consequently, at the Thirteenth SAARC Summit held in Dhaka on 12-13 November 2005, it was decided to reconstitute the SADF into the SAARC Development Fund (SDF). The SDF was envisioned as the “umbrella financial mechanism” to support all SAARC projects and programs, thereby enhancing the effectiveness and reach of regional development initiatives.
The SAARC Development Fund (SDF) was officially established and inaugurated on April 28, 2010, by the Heads of States/Governments during the Sixteenth SAARC Summit in Thimphu, Bhutan. As the umbrella financial institution for SAARC projects and programs, the SDF aligns with the objectives of the SAARC Charter. Its mission is to foster regional cooperation and integration through project collaboration across member states.
The primary objective of SDF is to:
To achieve these objectives, the SDF has the mandate to identify and finance projects, mobilize resources, and provide both financial and technical assistance, including comprehensive management of the Fund. The SDF operates through three funding windows: the Social Window, the Economic Window, and the Infrastructure Window.
The Social Window primarily funds projects on poverty alleviation, social development focusing on education; health; human resources development; support to vulnerable/disadvantaged segments of the society; funding needs of communities, micro-enterprises, and rural infrastructure development.
The Economic Window extends funding to non-infrastructural projects related to trade and industrial development, agriculture, service sector, science and technology and other non-infrastructure areas. Under the Economic Window, SDF proposes to fund Micro, Small and Medium Enterprises (MSME) program in SAARC Member States. MSME funding scheme within the Economic Window of SDF. The MSME Funding Scheme of SDF has recently been approved in the 30th SDF Board meeting
The Infrastructure Window is primarily utilized to fund projects in areas such as energy, power, transportation, telecommunications, environment, tourism and other infrastructure areas.
SDF is governed by the Governing Council that comprises Finance Ministers of SAARC Member States. The Board of Directors of SDF comprises the senior officials representing Finance Ministries of Member States, Secretary General of SAARC Secretariat and Chief Executive Officer, SDF. The current chairperson of SDF Board is Board Director, Bangladesh.
