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Nepal has been selected as Vice Chair of the Asian Infrastructure Investment Bank (AIIB) for the group of non-regional member countries for the coming year.

The selection was made during the 11th Annual Meeting of the AIIB Board of Governors, currently underway in Doha, Qatar.

Under the AIIB’s organizational structure, the bank has one president and two vice chairs, with one representing regional members and another representing non-regional members. Ireland has also been selected as a vice chair from the non-regional member group alongside Nepal this year.

Finance Minister and Nepal’s Governor to the AIIB, Dr. Swarnim Wagle, formally assumed the responsibility during the annual meeting.

Addressing the Governors’ Business Roundtable on the second day of the meeting, Wagle emphasized the importance of infrastructure-led capital formation as a major driver of economic growth in less-developed countries.

He highlighted the need to expand investment in key productive sectors, including roads, electricity, communications and information technology. Wagle said AIIB financing should be made more concessional and better aligned with the needs of developing economies such as Nepal.

He also stressed the need for the bank to provide financing mechanisms capable of attracting both domestic and international private capital into infrastructure and other productive sectors.

Nepal’s appointment to the vice chair position gives it an opportunity to contribute more directly to discussions on AIIB’s investment priorities, financing frameworks and infrastructure development agenda for developing economies.