From desto archieves
Pakistan's new generation MBT, the Al-Khalid II is a generational leap in capability over every tank Pakistan has employed with the possible exceptions of the Al-Khalid and T-80UD.
The tank is externally very similar to the Al-Khalid, due to the success of it's basic external design (though the turret's volume is slightly larger). Internally, however, the tank is not nearly as similar. While only 55% of the Al-Khalid's components were essentially new (the rest were derived from existing designs), the new Al-Khalid II utilizes no components from any MBT other then the Al-Khalid. 35% of it's components were not in the Al-Khalid. This makes the Al-Khalid II a substantially superior tank. Near every component has been changed in some way, some minor, some major. The fire-control system has been refined and improved in it's speed at acquiring targets and making firing available in all conditions, particularly at high-speed over rough terrain. The commander is now available to acquire two targets independently, as opposed to one in the Al-Khalid. The laser-range finder has been made more robust, while the night-vision systems and all sights have been made more sensitive.
In general, near all components have been made more robust, as part of the Army's drive to make the tank an ultra-reliable marvel of engineering. This is partially necessitated by a heavier design and more powerful (by 150hp) engine.
Perhaps the greatest advance in the tank's design is it's armour. While maintaining the modular and thus easily modifiable armour of the Al-Khalid, it has added another "layer." The Al-Khalid II's armour is made up of as much as 6 layers of armour, a base layer of steel, a layer of ultra-hard composites (to defeat long rod penetrators), another more minimal layer of steel (all of these layers being spaced to prevent penetration by a HEAT warhead), a layer of Kevlar to defeat minor threats to the tank (like small arms and smaller armour-piercing threats), and then a layer of nERA (non-explosive reactive armour, in this case, rubber), and then finally a layer of (selectively applied) bricks of either composites (often employed in peacetime to save costs and maintenance) or ERA (explosive reactive armour) to defeat HEAT-type threats. The tank is also equipped with more effective damage control (like explosive suppression) systems.
The tank's armament is the same, but it has been made more lethal through the addition of more effective supporting systems. The autoloader maintains it's speed of loading at 8-rounds a minute, but the carousel now holds 28 rounds, allowing more rounds to be stowed at ready. The new indigenous Niaza-II 125mm DU round (penetration: 650mm at 2,000m) is a significant improvement to the older Niaza rounds on the Al-Khalid. This is partially achieved through a longer penetration rod.
Upgrading the Al-Khalid to Comparable Standard:
The Al-Khalid tank was specifically designed with modularity in mind. As a result, the Niaza-II will be employed on the tank, once significant numbers are manufactured. In addition, the armor has been upgraded to Al-Khalid II standards (roughly). An upgrade package for the Al-Khalid has been designated Al-Khalid IB, this will probably be employed on all Al-Khalid MBTs eventually.
Deploying the Al-Khalid II:
Pakistan requires 1200 Al-Khalid II, to replace the Type 59, Type 69, and Type 85-IIAP. Only 300 of these 1200 tanks (the Type 85-IIAP) are the only tanks considered capable enough to soldier on to 2020. Thus, 900 replacement tanks are required fairly rapidly, with 300 more needed thereafter. The procurement schedule will be as follows:
2012: 100, 2013: 200, 2014: 200, 2015: 200, 2016: 200, 2017: 150, 2018: 150
The 2017 & 2017 national procurement will decrease to allow for exports, and due to decreased demand to replace the Type 85s. By 2014, this will allow the Type 59s, and by 2016 the Type 59s. Some of the 100 Al-Khalid II's listed to enter service in 2012 (initial entry) will actually be built in late 2010, so that the tanks can trial (about 15) in 2011, in 2012 the tanks are projected to be cleared for service entry, as 100 of them reach the army.
After 2016, the Al-Khalids will be upgraded en masse to Al-Khalid IB standard, as factory burden decreases. After 2014, some Al-Khalids may be upgraded for trials type purposes.
Defence Science & Technology Organization (DESTO) (21c)
More about Babur II and Shaheen III in the link as well