This tiny Himalayan nation with its idyllic beauty and natural simplicity of its people is all set to host for the first time the 16th SAARC summit Wednesday with trade and climate high on its agenda.

In its silver jubilee year, the eight-nation South Asian Association forRegional Cooperation (SAARC) will focus on climate change and sign three agreements - protecting environment, tackling natural disasters and on enhancing trade cooperation - at the end of the two-day summit in Thimpu, the capital city of the landlocked kingdom.

Bhutan is hosting the summit of SAARC region that accounts for almost 1.5 billion people - nearly one-fourth of the world’s population.

This is also the first biggest international event being held in the country which is fiercely protective of its Buddhist culture.

The 60-km long mountanious route from Paro Airport to Thimpu was lined by thousands of schoolchildren, dressed in traditional robes — kira for girls and goh for boys. They vigorously waved the flags of the eight nations.

Roads in the city are bedecked with colourful banners and buntings to welcome foreign delegates and the weather is pleasant — maximum temperature hovering around 13 degrees Celsius.

In line with Bhutan’s climate protection policy - Bhutan is one of the world’s greenest nations with nearly 70 percent forest cover- a joint declaration “Towards a Green and Happy South Asia” is expected to be an outcome of the summit.

The eight nations - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka - will sign the environment convention to boost exchange of practices and knowledge, capacity building and transfer of eco-friendly technology in areas such as climate change, coastal zone management, wildlife conservation and environmental impact assessment studies.