Islamabad: The Government of Pakistan's Ministry of Economic Affairs and the Asian Infrastructure Investment Bank (AIIB) on Tuesday signed a loan agreement worth 320.16 million US dollars for Phase-IA of the 'Reconstruction of National Highway N-5 under Pakistan's Resilient Recovery, Rehabilitation and Reconstruction Framework Project.'

The 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).

According to the Economic Affairs Division, the project will rehabilitate critical sections of the National Highway N-5 passing through Sindh, Punjab and Khyber Pakhtunkhwa, strengthening Pakistan's transport network and regional connectivity.

Federal Minister Ahad Cheema appreciated the longstanding partnership with AIIB and described the bank as a reliable development partner of Pakistan. He said the N-5 project would help strengthen resilient infrastructure while enhancing trade activities, regional connectivity and economic growth.

Secretary Economic Affairs Division Muhammad Humair Karim Kidwai also appreciated AIIB's continued support and stated that the N-5 Road Project would deepen bilateral cooperation and strengthen Pakistan's sustainable infrastructure network.

AIIB Chief Investment Officer Konstantin Limitovskiy highlighted the strategic importance of the N-5 corridor as part of an international transport network. He said the reconstruction would be carried out using modern, green and climate-resilient design standards to ensure efficiency, sustainability and long-term durability.

The signing ceremony was described as another milestone in Pakistan-AIIB cooperation and a reflection of the shared commitment towards resilient infrastructure development, enhanced regional connectivity and sustainable economic growth.