Pakistan and the Asian Infrastructure Investment Bank have finalized a $320.16 million loan agreement to reconstruct key sections of the N-5 Highway under a national resilient recovery and rehabilitation program.

The financing will support Phase-IA of the “Reconstruction of National Highway N-5 under Pakistan’s Resilient Recovery, Rehabilitation and Reconstruction Framework,” according to the Economic Affairs Division.

The project targets damaged and high-priority segments of the N-5 corridor spanning Sindh, Punjab, and Khyber Pakhtunkhwa. The highway serves as Pakistan’s primary north-south transport route, connecting major industrial and commercial regions.

The agreement was signed by Economic Affairs Secretary Muhammad Humair Karim Kidwai and AIIB Chief Investment Officer Konstantin Limitovskiy, with Federal Minister for Economic Affairs Ahad Khan Cheema also present. A parallel agreement was signed between AIIB and the National Highway Authority.

Officials said the upgrade will introduce climate-resilient and modern engineering standards aimed at improving durability, safety, and long-term connectivity. The project is expected to strengthen trade links and support broader economic activity across the country.