The production follows the signing of a formal agreement between China's North Industries Corporation (Norinco) and Pakistan's Heavy Industries Taxila (HIT) in the first week of August. HIT plans to produce upto 50 per cent of the MBT in the initial stages.

``Commencement of the production of MBT 2000 (Al-Khalid) constitutes a significant breakthrough in Pakistan's quest for self-sufficiency in the vital field of military production, along with expanding the base for indigenisation in the critical sphere,'' said a Pakistani official in Islamabad, according to the weekly.

On October one, 1998 it was announced that Pakistan would manufacture a new MBT with the assistance of China and a development contract was signed with Norinco in 1990.

The development process of the Al-Khalid began in 1989 and was completed with extensivetrials of the prototype during the summer of 1998 in Pakistan's desert regions.

The weekly quoting officials said that while moving at a speed of 40 km per hour, the Al-Khalid can hit more than 85 per cent of its mobile targets at ranges of two kms.