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The 11th South Asian Association for Regional Cooperation summit will commence at the Birendra International Convention Centre on Friday afternoon in the shadow of unprecedented security and increasing India-Pakistan tension.
All the heads of state, except Pakistan President Gen Pervez Musharraf and Bangladesh Prime Minister Khaleda Zia, are in Kathmandu.
President Musharraf and Prime Minister Zia are expected to arrive hours before the summit begins at 1400 hours (local time).
Diplomats expect the tone for the next three days to be set by Musharraf's speech.
As of now, there are no indications of a meeting between Musharraf and Vajpayee.
The summit will begin at 1400 hours (local time) after the inauguration by Nepalese Prime Minister Sher Bahadur Deuba.
Immediately after that, Sri Lankan President Chandrika Kumaratunga will hand over the chairmanship of the summit to Deuba.
The SAARC secretary general would present the report card after the address by all the heads of state.
On Saturday, the seven leaders and their delegations will travel to Nagarkot for a day-long retreat at the Club Himalaya hotel where the leaders are expected to hold a close door meeting.
The closing session on Sunday morning would pass the Kathmandu Declaration, which is expected to condemn terrorism, call for poverty elimination and concerted efforts to make South Asia a free trade zone.
Meanwhile, the Royal Nepal Army has virtually taken over the entire city, blocking off roads to the convention centre. It has called in several columns of soldiers from the interiors where they were deployed for fighting Maoist extremists.
While security personnel are losing sleep fearing Maoist attacks, the inability of SAARC to make any major strides in the past 15 years and the Indo-Pak tension will weigh heavily on their minds of the seven heads of state attending the summit.
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