Pakistan has secured a $320.16 million loan from the Asian Infrastructure Investment Bank (AIIB) for the reconstruction and rehabilitation of the N-5 highway. This agreement, signed on May 19, 2026, focuses on critical sections of the National Highway (N-5), which traverses Sindh, Punjab, and Khyber Pakhtunkhwa, serving as a vital component of Pakistan’s transport network.
The loan agreement was finalized between Muhammad Humair Karim Kidwai, Secretary of the Economic Affairs Division, and Konstantin Limitovskiy, Chief Investment Officer of Public Sector and Project and Corporate Finance (Global) Clients of AIIB, with Minister for Economic Affairs Ahad Khan Cheema present. A separate project agreement was also signed between AIIB and the National Highway Authority.
Minister Cheema expressed appreciation for AIIB’s long-standing partnership with Pakistan, highlighting the bank’s role as a reliable development partner. He emphasized that the N-5 project would not only strengthen resilient infrastructure but also boost regional connectivity, trade activities, and economic growth.
The N-5 corridor is crucial for connecting key regions of the Country, enhancing sustainable infrastructure, and supporting economic development. AIIB’s Limitovskiy underscored the strategic importance of the project, noting its role in an international transport corridor. The reconstruction will incorporate modern, green, and climate-resilient design standards to ensure efficiency and sustainability.
Looking ahead, the project is expected to deepen Pakistan’s partnership with AIIB, strengthen mutual trust, and advance the country’s sustainable infrastructure network. The reconstruction of the N-5 highway is anticipated to have long-term benefits for regional trade and connectivity.
Published in SouthAsianDesk, May 20, 2026
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