Today the situation is same for IAF & PAF
Pretty much, but the important point is, that we have to split the forces, while PAF has not. When you compare the fighter fleet with numbers and capabilities till 2015 it might look like this (only the comparable fighters with at least some 4th gen capabilities):
Low end 4th gen:
PAF - around -100 x JF 17 Block 1 and 2 + around 80 (possibly up to 100) x F16 MLU & Block 52s
IAF - around 100 x Mig 21 Bisons + around 43 x upgraded Mirage 2000-5 + around 60 x Mig 29SMT+ 40 x LCA MK1
Hi level 4th to 4.5 gen:
PAF - around 50 x JF 17 Block 3 + 36 x J10B
IAF - around 230 x MKI + 18 x Rafale
lo => 180 vs. 240
hi => 86 vs. 248
total => 266 vs. 488
Looks good in total numbers, but now split IAF fighters in half for western boarders and half for eastern and it suddenly looks different:
lo => 180 vs. 120
hi => 86 vs. 124
total => 266 vs. 244
The problem for IAF here is splitting forces in first place, since they understood China is getting more and more to a threat on the eastern borders and we have to counter it. That reduces forces in the west, which alone wouldn't be an issue, but if you also have internal problems in replacing older fighters, your numbers of course will fall short. To make it even worse, PAF is doing a good job with it's modernising pace, by replacing older fighters with JF 17 in good numbers. That brings the numbers of capable fighters way closer to those of IAF too and as shown above, even ahead on the lower end.
However, this shortfall was calculated by IAF/MoD and they compromised on less numbers to counter PAF, for increased capability to counter PLAAF and increased improvements for the indigenous industry. That's why they went from MRCA (fast fighter replacement) to MMRCA (higher capability, more industrial long term benefits) and when we see the already started developments for FGFA, MRTA, AMCA and AURA, it makes clear that they are looking ahead with a mid to long term strategy to get an edge again.
Personally I do think they made the right decision for the future and to counter PLAAF, but still should have acted faster for the current fleet modernisation. At least half of the Super 30s could be produced by Russia, instead of adding them all to HALs production line and make them till 2017. Also we should procure more than just 1 x Rafale squad directly from France, both would increase the replacement and modernisation pace and would counter the shrinking sqaudron numbers.
Similarly, IAF/MoD should have reacted faster to the delays of DRDO AWACS development and procured more A50 Phalcons earlier, to deploy reasonable numbers to both borderlines and offer propper AWACS coverage. Imo this is the biggest problem for IAF and tactically a way bigger issue than the low squadron numbers.