The Economic Affairs Division (EAD) and the Asian Infrastructure Investment Bank (AIIB) today signed the Loan Agreement for Phase-IA of the “Reconstruction of National Highway N-5 under Pakistan’s Resilient Recovery, Rehabilitation and Reconstruction Framework Project” amounting to USD 320.16 million. The project will cover critical sections of the National Highway (N-5), which traverses Sindh, Punjab, and Khyber Pakhtunkhwa, serving as a backbone of Pakistan’s transport network.
The Loan Agreement was signed between Mr. Muhammad Humair Karim Kidwai, Secretary Economic Affairs Division, and Mr. Konstantin Limitovskiy, Chief Investment Officer, Public Sector & Project and Corporate Finance (Global) Clients, AIIB, in the presence of Federal Minister for Economic Affairs, Mr. Ahad Khan Cheema. A separate Project Agreement was also signed between AIIB and the National Highway Authority (NHA). Additional Secretary, Ministry of Communications, and C.E.O of National Highway Authority were also present.
Federal Minister for Economic Affairs Division, Ahad Cheema appreciated the longstanding partnership with the Asian Infrastructure Investment Bank, stating that the Bank has consistently proven to be a reliable development partner of Pakistan. He said that the N-5 project would not only strengthen the country’s resilient infrastructure but would also play a significant role in enhancing regional connectivity, trade activities, and economic growth.
The Secretary, EAD appreciated the longstanding partnership with the Asian Infrastructure Investment Bank, noting that AIIB has consistently proven to be a strong and reliable partner. He emphasized that the N-5 Road Project will further deepen this partnership, strengthen mutual trust and cooperation, while advancing 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.
The Chief Investment Officer, AIIB, highlighted the strong development collaboration with the Government of Pakistan, and expressed the strategic importance of the N-5 project as it serves part of an international transport corridor. He further added that the N-5 reconstruction will be undertaken using modern, green, and climate-resilient design standards with state-of-the-art infrastructure, ensuring efficiency, sustainability, and long-term durability.
The signing marks another important milestone in Pakistan-AIIB cooperation and reflects the shared commitment of both sides toward building resilient infrastructure, enhancing regional connectivity, and promoting sustainable economic development.
