49 mirages in service as of now.
The LCA has logged 2000+ flight hours and tested all sorts of weapons, except BVR firing through radar. Unfortunately the IAF won't accept the LCA until it is fully fit for wartime duties. The question of supporting indigenous industry is not on their minds. PAF inducted JF-17 even before it had A2G capabilities. The IAF is adamant in its demand that the LCA should be as capable as the mirage-2000, while being as light and small as a mig-21. Until every little issue is niggled out, they will not give it the FOC.
Inducting gripen or something else at this stage will be several times more expensive than upgrading mirages, because then you will have to take into consideration the cost of training pilots, creating maintenance and overhaul facilities, accumulating spares, and other logistical nightmares. That is simply out of the question. IAF is desperately trying to reduced the types of aircrafts it is flying, not add another. We already have decades of experience in using the mirages, and know it inside out.
In your post above, you forgot one big fish - the Rafales, which will start arriving in 2015 or so. So despite the low number of squadrons, the IAF will still comfortably retain its superiority over the PAF, even if it doesn't accept the LCA soon. And in time, there will be about 200 or so LCAs in service with the IAF (Mk1 + Mk2). That is inescapable, because we simply cannot afford to use huge twin engine jets for every role in war and peace.
Even in the present scenario, the huge fleet of MKIs, mirages and upgraded mig-29s is enough to give us a comfortable edge over PAF. The fleet of MKIs itself is more than the number of 4th gen aircrafts presently in service with PAF. Like IAF, PAF also has a huge number of obsolete aircrafts that will just not be able to do anything in war.
What worries the IAF most is a two front scenario. A simultaneous war with Pakistan and China - if that happens, the IAF will be woefully short of numbers. In such a case, we need at least 42 squadrons to fully defend against China, and to conclusively defeat PAF. We won't attain that number for the next ten years or so. And we won't attain that number without a large number of cheap LCAs to fulfill the low end needs. That is the reason you hear about the IAF's fighter woes these days, because they are thinking in terms of a two front war, and not just Pakistan.