Pakistan's first home-built submarine has been handed over to the navy to begin sea trials, defence officials have said.

The news follows India's announcement over the weekend that it is close to signing a deal with Russia on the acquisition of an aircraft carrier.

Pakistan's Agosta-90B submarine was built under the supervision of French engineers.

The PNS M Saad is the second of three submarines Pakistan is acquiring and should come into service this year.

Work suspended

The first, built in France, was handed over in 1999 and is already in service and the third is still under construction in Pakistan.

Last May's attack in Karachi delayed the project

The three-vessel deal is worth $1.2 billion.

The PNS M Saad, named after a close associate of the Prophet Mohammed, has already satisfactorily completed 750 harbour trials.

The submarine is equipped with four bow torpedo tubes, missiles and a French combat electronics system.

The vessel will be tested in the Arabian Sea off Karachi.

The submarine was scheduled to be launched in 2001 and commissioned by the Pakistan navy in February 2002.

Mr Fernandes in Russia to seal the aircraft deal

But work was suspended after the 11 September attacks in the United States and further delayed by a car bomb in Karachi in May last year that killed 11 French engineers engaged on the project.

India's deal to acquire the 44,500-tonne Admiral Gorshkov aircraft carrier could be signed by the end of March, Indian defence officials have said.

Indian Defence Minister George Fernandes travelled to Russia last week to hammer out the deal.

The $3 billion contract would also cover the leasing of Tu-22M3 long-range strategic bombers and Akula class nuclear submarines to Delhi.