I'm not sharing any news here, but in my opinion, I still would not discount the Typhoon T3.
Firstly, if the PAF is for whatever reason unable to get additional F-16s from the US, this would free-up funding (outside of CSF/FMF arrears).
Secondly, the T3 can readily inter-operate with the F-16 Block-52/MLU, so we can build a 'high-tech' fighter fleet of ~100 aircraft (especially if we manage to secure the V-upgrade for our existing F-16s).
Thirdly, Leonardo might be amenable to an offset agreement wherein it invests a sizable chunk of the contract into Kamra Aviation City in the form of an extensive D-level MRO facility to support not just the Typhoon (which could include Pakistani plus Kuwaiti, Qatari, Omani, etc planes), but also the domestic AW139 fleet and potentially M346 LIFT, AW101 and/or AW189 should Pakistan go for any of those.
Fourthly, Turkey's interest in the Su-35 and Su-57 likely means it isn't getting what it wants from the Typhoon Consortium, so the prospect of adding used T1s (especially as a bridge until the T3s are ready) is a possibility.
Fifthly, Leonardo could potentially share some critical R&D help for Project Azm, especially in flight control systems, composites manufacturing, etc., if we procure the Typhoon T3.
Based on open source info, a contract for 24 Typhoon T3s would cost $6.6 b USD.
If you spread that across 10 years, your outlay is about $660 m per year.
According to the TyTAN program, it probably costs around $10 m to fly a Typhoon every year (spare parts, maintenance, etc). In other words, if you're operating 24 Typhoons, you're spending $240 m a year on support. These support costs would come out of the PAF's annual budget, not the DGDP's procurement budget. In other words, the procurement outlay is $420 m per year for 10 years.
In other words, the DGDP/PAF need to square $420 m per year to make a Typhoon T3 purchase happen, and if there are no new-build F-16s in the mix, then this is totally doable. However, if you factor in the potential for Leonardo agreeing to offsets, then of that $420 m per year, something like $100 m a year could return to Pakistan in the form of investment in Aviation City (MRO site), R&D support for Project Azm, etc.