An agreement to this effect was signed in Islamabad on Monday.
This section of the motorway will connect the cities of Faisalabad, Gojra, Toba Tek Singh, Shorkot, Abdul Hakeem, Khanewal and Multan.
Speaking on the occasion, Finance Minister Ishaq Dar appreciated the assistance of world financial institutions for development work in the country.
The Manila-based bank said $990 million would go to a power distribution enhancement programme that would introduce a metering system for power companies across the country, helping to reduce loss and improve revenue collection and load management.
A second programme will receive a $400 million loan to support ongoing policy reforms aiming to build an affordable, sustainable energy sector, the ADB statement said.
Pakistan has been struggling to provide enough power to its nearly 200 million citizens for years.