ISLAMABAD: The Asian Infrastructure Investment Bank (AIIB) and Pakistan signed a $320.16 million loan agreement Tuesday to rebuild key sections of National Highway N-5 as part of the country’s recovery framework.
The financing covers Phase-IA of the “Reconstruction of National Highway N-5 under Pakistan’s Resilient Recovery, Rehabilitation and Reconstruction Framework Project,” according to a statement from Pakistan’s Economic Affairs Division.
The highway sections run through Sindh, Punjab and Khyber Pakhtunkhwa provinces, making up a major transport corridor linking economic centers.
Economic Affairs Secretary Muhammad Humair Karim Kidwai and AIIB Chief Investment Officer Konstantin Limitovskiy signed the agreement. Federal Minister for Economic Affairs Ahad Khan Cheema attended. The AIIB and Pakistan’s National Highway Authority also signed a separate project agreement.
Cheema called the AIIB a reliable development partner and said the project would strengthen climate-resilient infrastructure while boosting regional connectivity, trade and economic growth.
Kidwai said the project would deepen cooperation with the bank and support Pakistan’s sustainable infrastructure network, adding that the N-5 corridor connects key regions and supports economic growth.
Limitovskiy said the reconstruction would use modern, green and climate-resilient design standards to ensure sustainability and durability.
The Economic Affairs Division called the agreement a milestone in Pakistan-AIIB cooperation, reflecting shared commitment to resilient infrastructure and sustainable economic growth.
