Born in Delhi, Malhotra grew up in Nawabganj, Old Delhi,and studied at Manav Sthali School. Having graduating in Arts from Hansraj College, Delhi University, Pavan ventured into Delhi theatre circuit, thereafter he moved to Mumbai; where he started with television industry as an assistant on the sets of TV series, Yeh Jo Hai Zindagi (1984), before he got a role in Saeed Akhtar Mirza’s TV series on Doordarshan, Nukkad (1986), which got him noticed. Meanwhile he had entered the film industry and made his debut with Pankaj Parashar's Ab Ayega Mazaa (1984).