AIIB signs $320m loan for N-5 reconstruction

Modern, climate?resilient design to upgrade key transport corridor linking three provinces

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ISLAMABAD:

The Economic Affairs Division (EAD) and the Asian Infrastructure Investment Bank (AIIB) have signed a loan agreement of $320.16 million for the reconstruction of critical sections of National Highway N-5 under Pakistan's Resilient Recovery, Rehabilitation and Reconstruction Framework Project, according to a statement issued on Tuesday.

The highway traverses Sindh, Punjab and Khyber-Pakhtunkhwa, serving as the backbone of Pakistan's transport network. The loan agreement was signed by EAD Secretary Muhammad Humair Karim Kidwai and AIIB Chief Investment Officer Konstantin Limitovskiy, in the presence of Federal Minister for Economic Affairs Ahad Cheema. A separate project agreement was also signed between AIIB and the National Highway Authority (NHA).

Cheema appreciated the longstanding partnership with AIIB, stating that the bank has consistently proven to be a reliable development partner of Pakistan. He said the N-5 project would strengthen the country's resilient infrastructure and play a significant role in enhancing regional connectivity, trade activities and economic growth.

Limitovskiy 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 added that the 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.