There was never a contract for JF-17. JF-17 were not purchased for the simple reason that they were not a real upgrade over Mig-29. Of course this could change with the new Block 3 variant.
Regarding the purchase of new aircrafts, Azerbaijan signed a MoU with Leonardo in 2020 (1). Later that year Azerbaijani representatives visited Russian aircraft plants and announced intention to buy new fighter jets from Russia: Mig-35, Su-35 (2). Btw, in June 2020 Azerbaijani DM Zakir Hasanov said that “Azerbaijani pilots continue their training on modern Russian aircrafts”, probably talking about Mig-35 and Su-35.
With the developments that followed since 2020, including the current situation of Russian defence industry, it’s difficult to say if this is possible today. So China/Pakistan might be the only option for now, given that Western countries would not sell fighter jets to Azerbaijan. If a contract is signed with Pakistan, it would be for Block 3 variant of JF-17.
Armenia increasing its defence budget by 50% or buying Pinaka (Indian Smerch?) will not change the military balance. Azerbaijan’s military budget is $3.2 billion, but it will most likely increase too (increased revenues from oil/gas exports, GDP growth, geo-political situation).
1:
https://www.flightglobal.com/fixed-...-discuss-m-346-industrial-work/136904.article
2:
https://mod.gov.az/ru/news/predstav...a-po-proizvodstvu-boevyh-samoletov-30604.html