Finance Minister Urges AIIB to Boost Innovative Financing and Expand Non-Lending Services

Finance Minister Urges AIIB to Boost Innovative Financing and Expand Non-Lending Services

At the 9th Annual Meeting of the AIIB Board of Governors in Samarkand, Uzbekistan, Finance Minister Nirmala Sitharaman called on the Asian Infrastructure Investment Bank (AIIB) to enhance its financial offerings by introducing more innovative tools and services. She emphasized the importance of providing timely technical assistance and project preparation support, particularly for low-income nations, to help bridge the infrastructure financing gap.

Addressing the theme "Building Resilient Infrastructure for All," Sitharaman underscored the pressing need for sustainable infrastructure amidst global challenges, including climate change. She highlighted that geopolitical tensions and mounting debt burdens are hampering many countries' efforts to finance critical projects, placing the responsibility on AIIB to step up its efforts.

As India’s representative and the second-largest shareholder in AIIB, Sitharaman praised the bank for its client-focused initiatives, including its quick response during the COVID-19 pandemic and the creation of climate-focused financing programs. However, she noted that AIIB must increase its scale and impact, particularly in line with the goals set by the G20.

Sitharaman advocated for fostering strategic partnerships, policy dialogue, and the sharing of best practices to enhance AIIB's role in global infrastructure development. She also highlighted India’s focus on urban infrastructure, renewable energy, and e-mobility as key drivers of sustainable growth and called for the transfer of successful practices from India and other Asian nations to lower-income countries.