Its a pleasure to know that you found the writeup helpful.
I think you have a misconception that the welding of the body and chassis has something to do with the way the car sits. There is absolutely no connection.
The rear suspension needs to be reset to bring the car back to suitable stance. Its too raised from the rear which naturally causes the front to be lower down. Setting the rear suspension would improve if not cure the problems up front.
Tires rubbing on the fenders is of course due to the low front height. A VW mech would be able to tweak the front suspension a bit further for optimal operation.
I am not recommending a body and chassis pull at this moment seeing your budget. If the body is lifted off, might as well go with a proper floor job and detailing, something that might put you back by at least 15 thousand rupees (rough estimate). Plus you would need to find a body to floor gasket set. Karachi shops are out of them currently. You can try Lahore or Isloo.
Same goes for the paint. If you want to go for a color change then the best way is a bare metal resto of the body. This again means big $$$$. I would not suggest that since the car can be made to look decent in this paint with few touch ups. It may not be a head turner but it will give you good service.
I did notice the rear fenders being widened and the front seats are an obvious change. The job on the fenders is pretty neat.
In the end its your car, but if you have a budget of 35k then its not recommended that you go all the way for a major rebuild. If you really want to build a car ground up its better that you save one in rough condition from the scrappers torch.
Do keep us posted on your progress.
Best of luck.