The Asian Infrastructure Investment Bank (AIIB) is set to provide a $320 million loan for the reconstruction and rehabilitation of Pakistan’s National Highway-5 (N-5), one of the country’s most important, longest and oldest transport corridors, spanning 1,819 km from Karachi, Sindh, to the Torkham border crossing with Afghanistan in Khyber Pakhtunkhwa. The project aims to improve road safety, climate resilience, and regional connectivity.

According to officials, the funding will support the rebuilding of damaged sections of the highway while upgrading infrastructure to withstand extreme weather conditions and increasing traffic demands. The N-5 highway is Pakistan’s main north-south route, linking major commercial and industrial cities and carrying a significant portion of the country’s trade and cargo movement.

Authorities said the reconstruction project would include modern road engineering, drainage improvements, bridge rehabilitation, and enhanced safety measures to reduce travel time and transportation costs. The initiative is also expected to strengthen economic activity by improving connectivity between ports, industrial zones, and rural areas.

The AIIB has previously financed infrastructure and energy projects in Pakistan as part of broader regional development efforts.

Officials believe the latest investment will help modernise Pakistan’s transport network while supporting long-term economic growth and disaster resilience.

Analysts note that improving the N-5 corridor is considered vital for trade efficiency, logistics, and future regional connectivity projects linked to broader economic cooperation initiatives.