Well, when the French offered the F-1, they were done with that fighter.and assuming that french would have allowed us to upgrade further in early 2000s when it jump ship and went into indian camp..it wouldnt have..it would have been a disaster
PAF opted for something reliable the f7ps and then the super 7/jf17(which was in works in 1990s)
pakistan gdp was just 50b$ it did have money to go around and throw every where, we did have money for f16 or mirage 2000 our front role fighter
So, their interest in what we do or don't do with it was about as much as the Mirage III/5. The only difference is that by taking on a production capability, we may have been able to design and implement the electronics upgrade on our own.
Otherwise, I don't think they would've stopped us from BVR-ing the F-1s, just as they didn't (or couldn't) prevent us fitting the Mirage III/5 with H-2/H-4 and Ra'ad.