The fourth seeded Indian fought well before losing 22-24 21-17 15-21 against his unseeded opponent in a match that lasted an hour, here last night.
Having played a dominating role in the first two games, Pawar simply lost steam in the third and deciding game to lose out on a quarterfinal berth in the tournament.
Another Indian, Arvind Bhat, had already bowed out of the competition after losing his first round match in the men's singles.