I think a Karakoram would be an excellent platform to turn into a touring rig (assuming of course it's fully rigid), sounds like you need a new set of chainrings, chain and cassette for sure though. So this leads me to ask how mechanically handy are you? If the answer is that you do your own wrenching.. I personally would opt for the overhaul of the GT you're looking at under $100 USD more than likely, so I'd start with that, than we need to consider what handlebars are on it and what you ideally want.. then if the levers/shifters are compatible with the current bars... so more details please? Pics also would help a lot.