The China-backed Asian Infrastructure Investment Bank will jointly finance a major new highway in Pakistan in its first co-financed project with the Asia Development Bank. This makes it one of the first projects to win backing from the newly-established AIIB.

The project is a 64-kilometre-long stretch of the M4 highway that will connect Shorkot to Khanewal in Pakistan's Punjab province. It will also link with other highways to connect the cities of Faisalabad and Multan.

The M4 project was listed on the AIIB website as its first business opportunity with an estimated cost of 273 million US dollars. In a statement, the AIIB said that the ADB will be the lead co-financer and will administer the project on behalf of the other financing partners. The two banks signed an agreement to jointly finance projects at an ADB meeting in Germany on Monday.