[13][14] The current production variant of the Al-Khalid uses a diesel engine and transmission supplied by the KMDB design bureau of Ukraine.

Pakistan spent more than USD $20 million over the next eight years on the co-development of a model suitable for its needs and on creating a capability to manufacture it locally.

[18] The Project Director at Heavy Industries Taxila (HIT) Brigadier Nasir Mahmood SI(M) led Pakistan's first indigenously produced tank from conception to production.

Implementation of a hydro-gas suspension system was considered but, after technical evaluation, it was found to be impractical due to various limitations such as problems with reliability and maintainability.

An early version was armed with a Chinese gun and fire-control system, and had a German-designed MTU-396 diesel engine which was built under licence in China.

The Chinese company Norinco showed the new Type 90-IIM during the March 2001 Abu Dhabi Defense Expo, under the export name MBT 2000.

[20] During the development period, Heavy Industries Taxila gained experience after building the Type 85-IIAP under Chinese licence and prepared to begin production of the Al-Khalid tank in 1999.

Pakistan signed a contract with Ukraine's Malyshev Factory in May 2002 for the delivery of 315 KMDB 6TD-2 diesel engines over three years.

[22] In December 2017, HIT officials told the Pakistan Senate that budgetary constraints had reduced the output of the tank to 18 per year on average.

[23] On July 28, 2020, the Pakistan Army inducted the first Al Khalid-I main battle tank into its Armoured Corps Regiment.

Al-Khalid was revealed on 17 July 1991, by the then Prime Minister of Pakistan, Mian Muhammad Nawaz Sharif, along with the then Pakistani Chief of Army Staff, Mirza Aslam Beg, in a ceremony held at the Heavy Rebuild Factory (HRF), Taxila.

The Army Chief said that for the first time in history, not only had technology been transferred to Pakistan, but the design was also made by Pakistani engineers themselves.

[14] Al-Khalid is designed with a 125 mm bore, 48 calibre long smoothbore, auto-frettaged and chrome-plated gun barrel which is manufactured from highly stiff electroslag remelting steel.

This gun provides very high internal chamber pressures for APFSDS, HEAT FS and guided missiles.

[citation needed] The gun retains qualities of both Chinese and Ukrainians mated with indigenous design for better and accurate firepower on stationary and moving targets alike.

The automatic ammunition-handling system for the main gun has a 24-round ready-to-fire magazine and can load and fire at a rate of eight rounds per minute.

[citation needed] Night vision for the gunner and commander is achieved through a dual-magnification thermal imaging sight.

It comprises a flat-screen display mounted inside the tank which communicates with those of other vehicles, including command posts such as the HIT Sakb.

[25] A project to manufacture the first Pakistani tank gun barrel was started by Pakistan's Strategic Plans Division (SPD) in 2000.

In April 2011, it was reported that the first Pakistani-produced tank gun barrel was ready to be delivered to HIT for installation on the Al-Khalid and Al-Zarrar.

The first Pakistani gun barrel blank was produced at Heavy Mechanical Complex (HMC) in a joint project involving HIT, People's Steel Mills Limited (PSML) and other defence-related organisations.

[citation needed] The Al-Khalid-1 later inducted into the Pakistan Army is improved further from the Al-Khalid 1 unveiled earlier anand is equipped with newly developed indigenous explosive reactive armor AORAK Mk.2, which is not only lightweight, but also more resistant to APFSDS, HEAT and HE-FS rounds.

The LTS 1 consists of a mast-mounted sensor and operator's control box, which includes a display showing threats 360 degrees around the tank.

[citation needed] The exact location of the threat (incoming beam) is indicated by nine LEDs, covering all directions above the horizon.