Dear @Anish S, As far as I know the standard tire size on a 3.5 LWB Pajero is 265/65/R17, but you are driving 265/65/R16 (I feel it's R17, please check again.). I used to have same issue as your with my Pajero after I upgraded my stock tires to 265/70/R17... the issue controlled to some extent after I went for a 2 inch lift with a suspension upgrade (But still I feel my tires hitting fender in Fewbie Plus and Intermediate drives). My recommendation would be to reconfirm your tire size and see if that helps. I am planning to go back to the stock tire size (265/65/R17) as it also helps in getting a better fuel average.