Several South Asian countries have joined the current wave of bilateral and subregional free trade agreements (FTA) in the region. The dynamics of regional cooperation is supported by the rapid economic expansion which is creating complementarities for trade expansion. The economic expansion in South Asia has shown divergence in performance. The number of FTAs has gone to as high as 23 in the region of which one is a sub-regional trade grouping (BIMST-EC) and one regional trade agreement (SAFTA) while there are 21 bilateral trade agreements in the region. One of the other interesting feature in the South Asian trade has been the presence of informal channels (or unofficial) nature of trade transactions which is estimated to be somewhere around US $ 3 billion. The informal trade takes place through different countries like Singapore, Sri Lanka and Dubai. Though the intra-regional trade has expanded over the years but is far below its potential as not enough attention is being paid on the launching of trade facilitation (TF) measures.