Beijing-based Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) have partnered to fund a $300m road project in Pakistan.

AIIB and ADB signed an agreement to fund the M4 highway, a 64-km motorway linking Shorkot to Khanewal in Punjab province.

ADB and AIIB intend to bolster cooperation, including co-financing at technical and strategic levels.

"The AIIB and ADB are already discussing projects for co-financing in the roads and water sectors."

The two banks will contribute almost an equal amount for the Pakistan road project.

In a joint statement, the two banks said: "The agreement sets the stage for jointly financed projects.

"The AIIB and ADB are already discussing projects for co-financing in the roads and water sectors."

According to a Financial Times report, in addition to the project in Pakistan, the AIIB is planning to fund a road project in Tajikistan and a road in Kazakhstan.

AIIB also expects to give funding of $1.2bn for several projects, including 12 projects with the World Bank and the ADB.

AIIB is a multilateral development bank with focus on infrastructure and other sectors such as energy in Asia.