Pakistan secures $320m AIIB financing for N-5 highway reconstruction

Pakistan on Tuesday signed a $320.16 million financing agreement with the Asian Infrastructure Investment Bank (AIIB) for the reconstruction of key sections of the National Highway (N-5) under the country’s resilient recovery framework.

The agreement covers Phase-IA of the “Reconstruction of National Highway N-5 under Pakistan’s Resilient Recovery, Rehabilitation and Reconstruction Framework Project”, according to the Economic Affairs Division (EAD).

The project targets critical stretches of the N-5 corridor in Sindh, Punjab and Khyber Pakhtunkhwa. The highway serves as one of Pakistan’s main transport arteries, connecting major economic and industrial centres across the country.

Secretary Economic Affairs Division Muhammad Humair Karim Kidwai signed the financing agreement with AIIB Chief Investment Officer Konstantin Limitovskiy in the presence of Federal Minister for Economic Affairs Ahad Khan Cheema.

A separate implementation agreement was also signed between the AIIB and the National Highway Authority.

Speaking at the ceremony, Ahad Cheema termed AIIB a dependable development partner and said the reconstruction project would support climate-resilient infrastructure, regional connectivity and economic activity.

Kidwai said the initiative would strengthen cooperation between Pakistan and the AIIB while contributing to the country’s sustainable infrastructure network.

He said the N-5 corridor carried strategic importance due to its role in linking key regions and facilitating economic integration nationwide.

AIIB Chief Investment Officer Konstantin Limitovskiy said the highway was part of an international transport corridor and noted that reconstruction work would adopt modern green and climate-resilient design standards to improve long-term sustainability and durability.

The EAD said the agreement reflected continued Pakistan-AIIB cooperation on resilient infrastructure development and sustainable economic growth initiatives.