Negative. The JF-17B IS the block-III.This is what i believe will happen. blk 3 would be with Chinese Radar and weapon package and Jf17B with south Africa or Turkey's weapon package with Grifo E.
The article says that Grifo E is better for sea terrain hence i believe PAF would definitely would look into it.
Albeit with placeholder Radar and electronics.
They may split the batches and offer the Grifo version internationally to Arab countries who prefer western electronics.