The Al-Khalid tank was developed in the 1990s and introduced in 2001.
The new version has improved capability and systems, an official statement said yesterday.
The contract for making the new tanks was signed by Pakistan's Heavy Industries Taxila and China's NORINCO at the Ministry of Defence Production.
The joint marketing of the Al-Khalid tank with China would open up potential markets, the statement said.
China is Pakistan's top arms supplier and leaders of the two countries describe their relationship as all-weather.
