With that kind of number of intended purchase, I'd be shocked if Pakistan does not require at least some batches of domestic production, building on top of and extending the current JF-17 production capability.
Nope no domestic production for two reasons
1- First
IF (again let me repeat its a rumour/chatter or buzz whatever you like to say it) we go for first batch of J-10CE second batch order might be delayed for sometime as this will be dependent on the progress of PAF next gen fighter program named Azam; this purchase of first batch if occur will be made as
stopgap purchase
2- PAF commitment with JF-17 production which may face hindrance if another in house production is initiated for number of reasons like
- shortage of trained manpower related to production in aviation sector
- its not be cheap to setup and maintain production facility for such a small number of jets
What PAF may seek with this deal might be a MRO facility with limited production rights for some necessary spares for J-10CE