Leaders of Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka will be holding the annual summit of the South Asian Association for Regional Cooperation or SAARC amid very tight security.
Reports from Dhaka say the agenda is expected to be dominated by the proposed agreements on combating terrorism and implementing a South Asian Free Trade Agreement or SAFTA.
The SAFTA deal would create the world's biggest free trade region and promote the group's founding objective of poverty alleviation in a region that is home to 60 percent of the world's poor people.
On Thursday, the foreign secretaries agreed to set up a regional disaster preparedness center in India. The summit is expected to endorse the move.