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

According to a press release issued by the Economic Affairs Division (EAD), the financing agreement relates to Phase-IA of the “Reconstruction of National Highway N-5 under Pakistan’s Resilient Recovery, Rehabilitation and Reconstruction Framework Project”.

The project covers critical sections of the N-5 highway passing through Sindh, Punjab and Khyber Pakhtunkhwa, one of Pakistan’s main transport corridors linking major economic centres across the country.

The agreement was signed by 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 the AIIB and the National Highway Authority.

Speaking at the ceremony, Ahad Cheema described AIIB as a reliable development partner of Pakistan and said the N-5 project would help strengthen climate-resilient infrastructure while boosting regional connectivity, trade and economic growth.

Kidwai said the project would further deepen cooperation between Pakistan and the AIIB and support the country’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.

AIIB Chief Investment Officer Konstantin Limitovskiy highlighted the strategic significance of the N-5 project, saying it formed part of an international transport corridor.

He added that the reconstruction work would incorporate modern, green and climate-resilient design standards aimed at ensuring sustainability and long-term durability.

The EAD said the agreement marked another milestone in Pakistan-AIIB cooperation and reflected both sides’ commitment to resilient infrastructure development and sustainable economic growth.