You're right, the RPG-16 was not issued in anything like the numbers of the RPG-7. And while the RPG-7 continues to be manufactured in Russia, RPG-16 production stopped in the mid-1990s. The RPG-16 was designed to be a sort of light recoilless rifle for the Airborne and Air Assault units (it is basically a much smaller version of the B-10), but the troops themselves were apparently not impressed by the RPG-16 and it has fallen out of favor and service.
In T2K, I would replace most references to the RPG-16 in encounters and OOBs with the RPG-7.
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I'm guided by the beauty of our weapons... First We Take Manhattan, Jennifer Warnes
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