Malhotra was born in Delhi on 2 July 1958.[4] Having graduated in arts from Hansraj College, Delhi University. His first hand experience in movies was as an assistant in costume department of Gandhi (film). Thereafter he was production assistant in Jaane Bhi Do Yaaro, Khamosh and Mohan Joshi Hazir Ho!. Pavan ventured into the Delhi theatre circuit, thereafter he moved to Mumbai, where he started with the television industry as an assistant on the sets of the 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).
In 2006, he was seen in Manish Goswami's Aisa Des Hai Mera on Sony television.[6] He is seen on the TV series Alag Alag and Partho Mitra's Patang on DD Metro. He recently starred in the major hit movies Jab We Met and Bhaag Milkha Bhaag. He is currently acting in Lagi Tujhse Lagan as Malmal More on Colors TV. He has recently worked in hit movies like Punjab 1984 and Children Of War.
In 2016, a retrospective to mark his 25 years in cinema was held at India International Centre (IIC), Delhi.
In the Latest Hindi Web Series Grahan (TV Series) on Disney+ Hotstar, he played a Character of Rishi Ranjan/ Gursewak Singh father of Amrita Singh (Zoya Hussain) which is released on 24 June 2021, based on the Satya Vyas Novel 'Chaurasi'