By Staff Reporter
ISLAMABAD: Pakistan and the Asian Infrastructure Investment Bank signed a $320.16 million loan agreement on Tuesday for the reconstruction of critical stretches of the N-5 national highway, the country’s longest and most heavily trafficked route linking Karachi to Torkham on the Afghan border.
The financing covers Phase-IA of the “Reconstruction of National Highway N-5 under Pakistan’s Resilient Recovery, Rehabilitation and Reconstruction Framework Project.” It targets key sections of the corridor that run through Sindh, Punjab and Khyber Pakhtunkhwa provinces and form the backbone of the nation’s transport network, connecting major economic centers and facilitating domestic and cross-border trade.
The loan pact was signed by Muhammad Humair Karim Kidwai, secretary of the Economic Affairs Division, on behalf of the government, and Konstantin Limitovskiy, the AIIB’s chief investment officer for public-sector and project and corporate finance clients. Federal Minister for Economic Affairs Ahad Khan Cheema attended the ceremony. A separate project agreement was executed between the AIIB and Pakistan’s National Highway Authority.
Speaking at the signing, Cheema said the AIIB is a reliable development partner and the project would bolster climate-resilient infrastructure while boosting regional connectivity, trade and economic growth. Kidwai said the initiative would deepen cooperation with the bank, strengthen mutual trust and advance Pakistan’s sustainable infrastructure network. “The N-5 corridor holds immense importance as it connects key regions of Pakistan, enhancing regional connectivity, strengthening sustainable infrastructure, and supporting economic growth across the country,” he said.
Limitovskiy highlighted the project’s strategic role as part of an international transport corridor. Reconstruction work will use modern, green and climate-resilient design standards with state-of-the-art infrastructure to ensure efficiency, sustainability and long-term durability,
The Economic Affairs Division called the agreement “an important milestone” in Pakistan-AIIB ties that reflects both sides’ commitment to resilient infrastructure, enhanced regional connectivity and sustainable economic development. The financing adds to a series of AIIB commitments in Pakistan. In 2019 the bank said it would invest more than $1 billion in the country. Most recently, with support from the AIIB and the Asian Development Bank, Pakistan issued its inaugural Panda bond in China’s onshore capital market, raising $250 million.
The N-5 upgrade is the latest in a string of multilateral-backed efforts to repair and modernize infrastructure damaged by floods and wear, while aligning with Islamabad’s broader push to improve trade logistics and attract investment along key economic corridors.
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