The project initiated by China during 80s but Pakistan came with the proposal for this mbt in 1991, project code name P90. So two projects went simultaneously as both China and Pakistan needed a new weapon system to fulfill their requirements. Obviously, China has more expertise in designing an mbt since 1960s so they helped us to a great deal but the original tank had serious issues with Chinese engine and transmission. Many of their sub systems at that time, were below par.But the majority of the Pakistanis call it a Pakistani tank, and the best tank in the world, and whatnot. You admitted it, you're sane, many others aren't.
What is not well known is the fact that Pakistan developed many R&D facilities in Taxila for the purpose of absorbing the tank technology, along with designing and assembling various sub systems such as composite armour, main gun (125 mm/ 120 mm, 105 mm respectively). China went ahead with their own requirements for a medium mbt (T98\ 99) and we opted for a further improved Type 90IIM.
Four prototypes were developed as per Pakistani specifications, the fourth one had our own developed 120 mm smoothbore gun along with LSG 3000 auto transmission for those customers who prefer higher western subsystems. Al Khalid is very different from MBT 2000 in many areas. The notion that we only integrate western/ foreign subsystems in AK is wrong. Today, AK stands as: composite armour, chassis, gun, tracks, electronics, airconditioning, digital driver panel. IIT system, LWS and LTS, BMS, datalink, optics, all of which are indigenous.