Pakistan and the Asian Infrastructure Investment Bank (AIIB) finalized a $320.16 million loan agreement on Tuesday to finance the reconstruction and rehabilitation of the N-5 highway. This vital project targets crucial stretches of the National Highway (N-5), which spans the provinces of Sindh, Punjab, and Khyber Pakhtunkhwa, serving as a fundamental artery in Pakistan’s transport infrastructure.
The agreement was signed by Muhammad Humair Karim Kidwai, Secretary of the Economic Affairs Division (EAD), and Konstantin Limitovskiy, Chief Investment Officer for Public Sector and Project and Corporate Finance (Global) Clients at AIIB. The ceremony was attended by Minister for Economic Affairs Ahad Khan Cheema. Additionally, a separate project agreement was executed between AIIB and the National Highway Authority (NHA).
Minister Cheema expressed his appreciation for the enduring partnership with AIIB, highlighting the bank’s consistent role as a dependable development ally for Pakistan. He underscored that the N-5 project will not only reinforce the country’s resilient infrastructure but also significantly boost regional connectivity, trade, and economic expansion.
Secretary Kidwai echoed these sentiments, emphasizing the strong and reliable collaboration with AIIB. He noted that this project will deepen mutual trust and cooperation while advancing Pakistan’s sustainable infrastructure network.
The N-5 corridor is of immense strategic importance, linking key regions across Pakistan. Its enhancement is expected to improve regional integration, promote sustainable infrastructure development, and support nationwide economic growth.
Konstantin Limitovskiy highlighted the robust development partnership between AIIB and Pakistan, stressing the strategic value of the N-5 highway as part of an international transport corridor. He added that the reconstruction will incorporate modern, green, and climate-resilient design standards, featuring state-of-the-art infrastructure to ensure efficiency, sustainability, and long-term durability.
