The Asian Infrastructure Investment Bank has joined hands with the Asia Development Bank to finance a major highway in Pakistan. The AIIB made the announcement about its first-ever project at an ADB meeting in Frankfurt, Germany, on Monday.

The $273 million US dollar project will be a 64-kilometre stretch of a highway connecting Shorkot with Khanewal in Pakistan's Punjab Province.

The AIIB officially launched in January and has plans to lend 10 to 15 billion dollars a year in its first five to six years of operations.