AIIB backs Pakistan's N-5 reconstruction with $320m loan

May 20, 2026 (MLN): The Asian Infrastructure Investment Bank (AIIB) and Pakistan’s Economic Affairs Division (EAD) have signed a $320.16 million loan agreement for the reconstruction of National Highway N-5, one of the country's most critical road arteries spanning Sindh, Punjab, and Khyber Pakhtunkhwa.

The project, part of Pakistan's Resilient Recovery, Rehabilitation and Reconstruction Framework, will see the highway rebuilt to modern, climate-resilient, and green design standards to ensure long-term durability and sustainability, according to a press release issued.

The N-5 corridor, which serves as a backbone of Pakistan's transport network, is also part of an international transport corridor, making the project significant for regional connectivity, trade, and economic growth.

The Loan Agreement was signed between Secretary Economic Affairs Division Muhammad Humair Karim Kidwai and AIIB Chief Investment Officer Konstantin Limitovskiy, in the presence of Federal Minister for Economic Affairs Ahad Khan Cheema.

A separate Project Agreement was also signed between AIIB and the National Highway Authority (NHA), with the Additional Secretary of the Ministry of Communications and NHA's Chief Executive Officer also in attendance.

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