Sir, though I am not an expert, but here are a few things that may be of interest to you. Generally the govt auctioned vehicles are abused beyond repair, the drivers and staff sell/swap everything that they can, including the fuel even. If you start to restore this vehicle, it will cost you an additional 4 to 5 lacs, which would include the engine, tyres, suspension, interior, paint, air conditioning, etc, and would take 2 to 3 months. Because you would be using this verhicle yourself, you would want to be sure it has reliable components. The restored vehicle may end up costing you around 9 to 10 lacs.
A convenient alternative is get an NCP vehicle of the same model and have everything swapped down to the nuts and bolts. Cost of an early 90s hard top is in the range of 3.5 to 4 lacs. The end product is expected to be much more reliable and would cause you lesser hassle. The places for getting an NCP vehicle are Peshawar and Torkham. For an additional 30 to 50k, those people can deliver the vehicle here also, but it is better to get the swap done in NWFP as those people are more experienced with this kind of a job and in case you notice any problems, you can have them fixed there and then.
Good luck (y)