Islamabad, Jan 5: The Asian Infrastructure Investment Bank (AIIB) has committed to providing $210.12 million in financing to Pakistan for the reconstruction of the 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. The aim of the project is to enhance climate resilience, improve operational efficiency, and boost road safety by upgrading critical four-lane segments into a six-lane dual carriageway that is more resilient to climate change.
AIIB is currently evaluating the project, with the loan expected to be approved by May 2025. The first phase of the reconstruction is estimated to cost $247.75 million, with the government contributing $37.63 million. The total cost for the Multi-Phase Programme (MPP) is projected at $587.98 million, with AIIB providing a $500 million loan and the federal government contributing $87.98 million.
National Highway N-5, Pakistan’s longest national highway, runs from Karachi in the south to the Khyber Pass in the north, passing through major cities like Lahore, Multan, Sahiwal, Gujranwala, and Peshawar. The reconstruction project will cover four critical sections of the highway, totaling 213 kilometers, spanning Islamabad Capital Territory, Punjab, Khyber Pakhtunkhwa, and Sindh. It will also involve rebuilding two key bridges in Sindh, including the Nai Baran Bridge and the Indus River Bridge at Hyderabad.
The first tier of the phase-1 project will focus on the 75 kilometers between Rawalpindi and Burhan, and between Nowshera and Peshawar. The second tier will address 138 kilometers, including the sections between Lahore and Gujranwala, and Ranipur and Rohri. The total investment will significantly enhance road infrastructure, which is crucial for trade and connectivity, as well as for improving the climate resilience of this vital national corridor.
Additionally, the AIIB has mobilized a $2 million project preparation special fund grant to ensure the comprehensive preparation of the project, which is aligned with the National Highway Authority’s 20-year plan to rebuild and expand Pakistan’s essential road infrastructure.
