Pakistan and the Asian Infrastructure Investment Bank (AIIB) have signed a major loan agreement worth more than $320 million for the reconstruction and rehabilitation of the important N-5 highway. The project is expected to improve transportation, strengthen regional connectivity, and support economic growth across the country.
The agreement was signed in Islamabad between Economic Affairs Division Secretary Muhammad Humair Karim Kidwai and AIIB Chief Investment Officer Konstantin Limitovskiy in the presence of Minister for Economic Affairs Ahad Khan Cheema. A separate agreement was also signed between the National Highway Authority (NHA) and the AIIB for the execution of the project.
According to officials, the reconstruction work will focus on critical sections of the N-5 corridor, which passes through Sindh, Punjab, and Khyber Pakhtunkhwa. The highway is considered one of Pakistan’s most important transport routes because it connects major cities, industrial zones, and trade centers across the country.
Minister Ahad Khan Cheema described AIIB as a reliable development partner that has consistently supported Pakistan in infrastructure and economic projects. He said the N-5 reconstruction would not only modernize the country’s road network but also improve trade activities and regional connectivity.
Officials further stated that the project would be completed using modern climate resilient and environmentally friendly infrastructure standards. Advanced engineering and green construction methods will be used to ensure long term durability, efficiency, and sustainability of the highway.
AIIB representative Konstantin Limitovskiy highlighted the strategic importance of the N-5 route, saying it serves as part of an international transport corridor and plays a vital role in economic integration and trade movement in the region.
The project is expected to create better travel facilities, reduce transportation costs, and strengthen Pakistan’s infrastructure sector while contributing to future economic development and regional cooperation.
