IMO JF-17 production will continue with iterative upgrades. I don't expect any significant changes to the airframe. Rather, the PAF will keep upgrading the electronics, especially as they get more and more power-efficient (e.g., GaN) and use the JF-17s as nodes for deploying LRAAMs and SOWs.
If there's one major change they will need to do, however, it'd be to adapt the JF-17 for motorway operations so that the PAF could mount a proper dispersal operations doctrine. It will need that now more than ever as India would use the BrahMos at very large scale and intensity to destroy the MOBs and FOBs.
If there's an appetite for a totally new fighter platform, then the PAF should focus on a jet-powered UCAV. I've mentioned this a bunch of times over a couple of years, but start with a 2-3-ton loyal wingman or CCA platform designed for expendability (i.e., make it cheap, but capable enough to deploy 2 SOWs or 2 LRAAMs). Develop and build the engine, composites, steel, and so on in Pakistan, and manufacture 1,000+ units.
To get to 1,000+ units you don't need to expand PAC or NASTP -- rope in the private sector. Give them a solid long-term production commitment (100 units a year for 10 years), and they'll invest in setting up net-new capacity. Cut red tape and do better and marketing, and they can profit from net-new exports.