1) 7.62x39mm has its limitations. It's not suitable for combat beyond 300m and bullet drop is considerable. Pakis use G3, which is a good battle rifle. That would put you in a disadvantage. Definitely not a political overdrive in fact it's the other way around as
@Marliii said(ak203 is a political deal).
2) You need a bargaining chip when the other party treats you as a cash cow. You want us to pay royalty for a widely copied design from 50s. If you are doing that then that's foolish
3) True. Domestic sector under monopoly of OFB produced weapons with horrible QC standards so the end user will exploit that by saying none of Domestic weapons will meet QC standards of army. This coming from people who designed the gsqr for carbine with 2 triggers is funny actually.