Pakistan and DCN France signed a contract for 3 Agosta 90-B submarines on 21 September 1994 and was valued at 5,4 billion francs (~ 775 million dollars). Financing for the contract rested on credit given to Pakistan by France and while allowing France to export the submarines nonetheless resulted in significant financial losses. Pakistan Navy engineers and workmen were to be trained and qualified in the construction processes. DCN was to assist PN Dockyard to upgrade the infrastructure for construction of submarine. To optimize the available infrastructure some works were shared with KS&EW as well.
Under the contract, one submarine was to be built in France while the remaining two were to be built indigenously in Pakistan. The first unit, "Khalid," was built in Cherbourg and delivered to Pakistan in 1999-2000. The Khalid is named after Hazrat Khalid Bin Walid, a successful military commanders of Islam who was bestowed the title of 'Saif Ullah' by the Holy Prophet. The second unit, "Saad," was begun in Cherbourg and sent to the Karachi Dockyard for modular assembly in 2000. The third unit, "Hamza," was manufactured entirely in Karachi.