ISLAMABAD – The Asian Infrastructure Investment Bank (AIIB) has approved a loan worth $320.16 million for the rehabilitation and reconstruction of major sections of Pakistan’s N-5 Highway under the country’s resilient recovery and infrastructure rehabilitation programme.
The financing agreement was signed between Economic Affairs Secretary Muhammad Humair Karim Kidwai and AIIB Chief Investment Officer Konstantin Limitovskiy, according to official sources.
In addition, a separate implementation agreement was signed between the AIIB and the National Highway Authority (NHA) for the execution of the project.
The funding will support Phase-IA of the “Reconstruction of National Highway N-5” project, which covers key portions of the highway passing through Sindh, Punjab and Khyber Pakhtunkhwa.
The N-5 Highway is considered Pakistan’s most important transportation corridor, connecting major cities and facilitating the movement of trade and passengers across the country.
The officials said the reconstruction initiative aims to strengthen climate-resilient infrastructure, improve road safety and enhance regional connectivity. The project is also expected to contribute to long-term economic development and boost commercial activities by ensuring smoother transportation links.
The government stated that the programme forms part of broader efforts to modernise the country’s infrastructure and improve its ability to withstand the impact of climate-related disasters and extreme weather conditions.
The authorities further said the agreement reflects continued cooperation between Pakistan and the Asian Infrastructure Investment Bank in supporting sustainable development and infrastructure improvement projects across the country.
The project is expected to help restore damaged road sections, improve travel efficiency and support economic growth by facilitating better connectivity between provinces and trade routes.
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