Pawar, seeded 11th, was outplayed 14-21 7-21 by South Korean third seed Lee Hyun Il in 34 minutes in the third round of men's singles at the North Shore Events Centre here.
With this victory, Lee has extended his lead to 2-0 over the Indian.
Meanwhile, Rachita Sahdev along with her mixed doubles partner Abhinav Manota of New Zealand lost 7-21 10-21 against Chinese fifth seeded pair of Zheng Si Wei and Chen Qingchen in 19 minutes in the second round.