IFR will only go so far, especially since the PLAAF is not exactly well stocked with tankers, and that does not look set to change any time soon.
The problem the JF17 faces is that it falls into a bit of a hole between two classes. It is directly competing with the J10 for the PLAAF's primary single engined fighter role. But unfortunately, it just does not quite match up against the J10 because of the weight difference. So the comparison is less USAF not needing F16s, but more like USAF not needing the F20 or F18 since it already have the F16.
At the other end, JF17 is too good to use as a low-end air policing fighter for minimal threat areas, armed JL9s and L15s would fill those voids just fine. It's shorter range (compared to the J10) and also being single engined would not make it the first choice for the navy either, so the chances of it becoming the PLANAF's F18 is not all that great either.
While it is possible that China is waiting for the domestic engine to be ready before making a purchase, that seems less and less likely as things like the J10B start moving closer to production.
I had hoped that the Aug 1st display team might have been tempted to by JF17s, and that would have opened the way for more to be purchased by the PLAAF, perhaps to focus as aggressors and/or as defensive cover, freeing up J10s and J11s to deploy as escorts for strikers or to conduct offensive air sweeps etc.
However, that the PLAAF has decided to splash out on J10s even for the display team does not bold well for the chances of JF17s appearing in the PLAAF.
In a way though, Pakistan should be pleased by this instead of dismayed. This is the ultimate proof that CAC has only had PAF's requirements and needs in mind when they designed the JF17 to the point where it is not well fitting for the PLAAF.
If I was a PAF pilot, I would much rather CAC did it that way than them having made design revisions or compromises to make the JF17 more attractive to the PLAAF, at the expense of PAF needs.
While export success would be most welcome, the far and away most important requirement is that the JF17 meets Pakistan's requirements and needs as well as it can. Would you really want to compromise of the JF17's core purpose just to make it more attractive to other buyers?