The production plant at Taxila in Pakistan was completed in 1992. Initial prototypes were developed in China in August 1991, and were used for trials. The concept is an update from the initial T902 M, and development at China's NORINCO had been going on for several years. Pakistan's production of the MBT-2000 Al Khalid began in 1988, and an agreement with China was reached in January 1990 to jointly design, build and produce the system. Maximum velocity of tank is up to 70 km per hour. Even with thermal imaging systems, the tank can run entirely during the night.

It also has the versatility of hunter killer that can track and engage more than one target while in motion. Al-Khalid's unique feature is it's fitted with an auto tracking system. Al-Khalid's main weapon is autoloader 125 mm smooth bore. It's armor is made of both composite material and reactive explosive armour.The Al Khalid is fitted with a 125 mm smooth bore weapon which can also fire missiles. It has a maximum speed of 65-70Km / h in 10 seconds with acceleration of 0-32Km / h. It had a 400Km fighting range and is equipped with night vision thermal devices. It is considerably smaller compared with other modern tanks, with a maximum weight of 46 tons in addition to a low silhouette.

The engine is a Ukrainian 6TDF diesel which produces 1,200 hp. This a Pakistani constructed tank, it's all made in Pakistan except for its engine.

The Al Khalid tank is based on the Main Battle Tank (MBT) of chinese Norinco Type-90-II.

By 2014 some 310 Al Khalid MBTs were made.In 2011 the Bangladesh army ordered 44 MBT-2000 from China.Operated by a three-man crew and armed with an automatically reloaded 125 mm smooth-bore tank gun, the tank uses a fire-control system and night-fighting equipment.Named after Muslim general Khalid bin al-Walid of the 7th century The Al-Khalid is a main battle tank built jointly by Pakistan and China during the 1990s, based on the 90-IIM Chinese Type tank.China North Industries Corporation (Norinco) built the original prototype under the name MBT-2000, and Norinco also offered the tank for export.

Al khalid 2 main battle tank