Not bad. With 3 drop tanks, 2 BVR and 2 WVR they can run a CAP at 150 Km for at least 1.5 hours. I think it is the same for LCA and both aircraft better Mig-21/J-7 in this role by at least 2-3 times.
The PAF want this aircraft in a strike aircraft as well. So, with 3 drop tanks, 2 WVR and 2 500Kg bombs, it does the same as a Jaguar.
So, they have an aircraft that exceeds J-7 in CAP and is on par with Jaguar for strike roles. That small wing allows for greater turning capability, so that would mean a F-16 type flight characteristics in a clean profile. No idea how good it will be when payload is added. But we know that low altitude performance will be superior to LCA with current engines.
Engine needs to be changed, it is simply underpowered. Even their latest engine will only bring it on par with the currently underpowered LCA Mk1.
Electronics does not seem to be great on JF-17. The radar still needs to be worked on. It may have a larger antenna than the LCA, but that won't translate to performance if the KLJ-7 is still the same as before. But someday it will eventually be similar in performance to aircraft like F-16, Mig-29 or Mirage-2000. I don't know what EW kit the aircraft will have. I am not sure if it will carry an internal suite, but pods can be expected and will eat away a precious hardpoint. Comparatively all our aircraft will have AESA based internal EW kit, including Jags.
Overall, this aircraft is meant to fill up the numbers and replace older aircraft. While it is not something IAF would do, considering finances this is PAF's best bet.