The Asian Infrastructure Investment Bank (AIIB) will extend $210.12 million in financing to Pakistan for the reconstruction of National Highway N-5 under the Resilient Recovery, Rehabilitation, and Reconstruction Framework. This marks the AIIB’s first standalone project in Pakistan’s transport sector, with a focus on enhancing climate resilience, operational efficiency, and road safety.
The project will involve the reconstruction and upgrade of critical four-lane segments into a climate-resilient six-lane dual carriageway, spanning across four provinces: Islamabad Capital Territory, Punjab, Khyber Pakhtunkhwa, and Sindh. The AIIB is currently evaluating the project and is expected to approve the loan by May 2025. The total cost of the Multi-Phase Programme (MPP) is $587.98 million, with the AIIB contributing $500 million, while the government will provide $87.98 million.
The first phase, which will cost $247.75 million, will focus on two sections: Rawalpindi to Burhan (44 km) and Nowshera to Peshawar (31 km), in addition to the reconstruction of the Nai Baran Bridge southwest of Hyderabad. The second tier of phase-1 will cover Lahore to Gujranwala (68 km) and Ranipur to Rohri (70 km), alongside the reconstruction of the Indus River Bridge at Hyderabad.
The AIIB is also mobilizing a $2 million project preparation grant to facilitate the project’s successful implementation. The N-5, which is the longest national highway in Pakistan, will benefit from the infrastructure upgrades, boosting connectivity from Karachi to Torkham, passing through major cities like Lahore, Multan, Sahiwal, and Peshawar.
The project aligns with the National Highway Authority’s 20-year plan to rebuild and expand critical infrastructure across the country. The release of the $210 million loan is expected in May 2025.
