Everything is not clear but my understanding is Turkey is nit stopping the manufacturing of airframe as they might still be hopeful to get the approval for reexport to Pakistan, or there is a possibility that Pakistan might have get the approval for T-129 separately
So whatever the case is we at least have the confirmation about the production of T-129 airframe and BTW Tipu is not the source of this news but some Turkish publication and some of this ur Turkish friends have reported it here first
There are currently 3 alternative options on the table.
1. Pakistan buys the CTS800 separately from the US or UK, and then fits them into the T129 at PAC
2. Wait to integrate and test the T129 with a Safran turboshaft engine
3. Wait for the TEI TS1400 turboshaft engine
But IMO... I'd rather keep waiting and actually get in on the ATAK-2. Co-fund the program so that we get co-production (for all units), and induct those in numbers over the long-term.
Not too thrilled about the T129 or Z-10 as they're on the lighter side, and the fact that India could field 100+ similar types (HAL LCH).
I'd rather disrupt the balance and aim for 100+ heavies, if at the cost of a slower and longer-term induction rate. The good thing about the ATAK-2 is that it'll likely use the same engine and dynamic components as Turkey's 10-ton general purpose helicopter. So we can have both an attack helicopter and new mainstay transport helicopter for the next 50 years.
What the PAF is doing is IMO the right approach; shelve off-the-shelf purchases and focus on Project Azm.
Sure, waiting isn't great for forum junkies like us, but to be brutally frank, we're not fighting a war anytime soon and our gov't/mil leadership will duck away from one unless it is thrust upon them by forces out of their control (see the current Kashmir situation).
And if we're going to sit idle, then let's at least invest in programs with far more long-term payoff and deterrence value.