Not sure if we would have started AZM in the 90s just because of building F-1s. More likey there would not be a JF-17 and we would still be building new F-1s now, a plane with no fbw and a turbojet engine.
F-1 was a good fighter but was late in coming and had to compete against new 4th gen aircraft like the F-16 which was better in every respect, same as M2000.
Well, according to ACM Sohail Aman, the Saab 2000 repair work was a big reason why we decided to try AZM.
The way I saw it, a Mirage F-1 engine refit project likely would have required setting up a design and testing capacity to fully explore. Because we would've had the production line, Denel would've done the work in Pakistan and, in the process, given us a basis and interest for aircraft design by the late 1990s.
On that basis, we might have wanted to try our hand on aircraft design and development in 1999 instead of 2017.
It's not a wild leap. The South Africans decided to make a jump from early 3rd gen Mirages to the 4+ gen Carver in the 1980s. It didn't deliver because South Africa didn't have the long-term threat issue of India or the funding commitment we have for AZM. Heck, we might have well taken over the work of the Carver as a starting point.
The possibility that we could've been working with the Project Carver and Cheetah engineers at that point (via a RD-93-ed 'Super F-1'), we may have worked on our own FBW tech, composites tech, etc, through the 2000s and 2010s.
As for the F-1 itself. The airframe is old, but Morocco is actually rocking JF-17 Block-2 level radar, avionics and weapons (incl. compatibility with MICA).
So, it may be under-powered (though maybe not if we swap the engine -- which the PAF did ask for, by the way, with the F-1), but more than serviceable. And a mainstay fleet of F-1s wouldn't preclude the possibility of a few M2K-5s or Rafales for the 'edge' capability either.
Ultimately, we canned the F-1 idea (and Sabre II -- which was to give us a similar basis to be frank) not because of the inherent limitations of those designs, but because we threw our chips behind the F-16.