Pakistan, AIIB Sign $320m Loan Deal for N-5 Highway Reconstruction

Pakistan and the Asian Infrastructure Investment Bank (AIIB) have signed a $320 million loan agreement to reconstruct the N-5 highway. Minister Cheema praises AIIB as a reliable development partner.

Economic Affairs Division Secretary Muhammad Humair Karim Kidwai and Konstantin Limitovskiy, Head of the Asian Infrastructure Investment Bank (AIIB), signed an agreement in Islamabad on May 19, 2026. The deal involves a $320 million loan to fund the reconstruction of the N-5 highway.

Minister Cheema expressed his satisfaction with the AIIB's involvement, describing it as a reliable development partner. He highlighted that this project will play a pivotal role in enhancing national connectivity and economic growth.

The N-5 highway is a critical artery connecting major cities across Pakistan’s Punjab province. The reconstruction aims to improve road conditions, reduce travel time, and boost trade between urban centers. Minister Cheema emphasized the importance of such infrastructure projects for fostering regional integration and attracting foreign investment.

"This project not only addresses immediate transportation needs but also lays the groundwork for future economic development," he stated. "We are confident that with AIIB's support, we can achieve sustainable improvements in this vital sector."

The agreement was signed during a high-level meeting held at the Economic Affairs Division headquarters. The presence of both Pakistani and AIIB officials underscored the strategic importance of the partnership.

Minister Cheema further the N-5 highway reconstruction project aligns with broader national development goals, including poverty reduction and job creation. He expressed hope that this collaboration will set a precedent for future infrastructure investments in Pakistan.

The Asian Infrastructure Investment Bank (AIIB) is an international financial institution dedicated to promoting sustainable infrastructure development across Asia and beyond. With its expertise and resources, AIIB provides crucial funding and technical assistance for projects like the N-5 highway reconstruction.

As work on the highway project begins, officials from both countries are optimistic about the positive impact it will have on Pakistan's economy and people’s daily lives. The successful implementation of this loan agreement is seen as a significant step towards realizing long-term development aspirations in the region.