Good day Pakwheelers, long time lurker, first time poster. I finally bit the bullet and sent in my '82 Corolla to get reworked top to bottom. First order of business is getting all the rust out and repair/change panels/doors/etc because of Karachi's lovely salty air and humidity. She's been with us for 31 years, I believe she deserves a bit of pampering.
After the major body work, then come all the mechanical parts i.e. Engine, Steering Column, Gear Differential, A/C, Rollbars etc
The current engine, stock 4k, cannot support an A/C, heck with four people in the car, it struggles to cross 30km/h in on an incline. The engine's been opened twice so I don't think we can get anything more out of it. Therefore, I've discussed with my mechanic to replace it. He suggests a 7k swap, but the 80hp figure doesn't please me one bit, however it will be an easy job without a lot of modification necessary. I would therefore request those more experienced in the matter to help me decide on an engine swap and if possible educate me a tad on what needs to be done.
The rest of the parts, I have no clue on, so I thought I'd start with the engine and work my way from there.
Thanks in advance for all the help. 
Ahsan.