Hypothetical question: Lets say J-31 with PAF customization is selected. What happens to AZM?It depends.
The starting point is the PAF setting its general requirements. I think this part was complete with the "first conceptual design phase" of the project. The PAF wants a twin-engine jet with super-cruising capability. We can assume the PAF is also looking for enough capacity for delivering SOWs.
So AvRID should have an idea of what kind of engine it wants.
It will now look at the market to see what's available.
IIRC the safer route is to select and engine and then design the fighter around it. The PAF is indeed waiting for a Chinese (or some ITAR-free engine available to it, the only non-Chinese route is Turkey tbh).
Yes, the engine would be developed for someone else's needs, but they're functionally the same across the board that it's not an issue as long as the ASR is met.
I do think we should hedge with the Turks, especially if they're open to two engine programs (i.e., the 130 kN for their TF-X and a 90+ kN for their LIFT Hurjet -- we can fund the latter engine).