Salam.
Can't seem to PM you for some reason although I have tried...the messages just don't go......
Anyway I will try and answer your questions here. Although I would have preferred discussing stuff over the phone since it is a lot easier.
Why am I buying one?
Now I can articulate a lot on that with some very convincing arguments regarding utility and all....but the fact of the matter is the keera in me has become irritable enough and I want to do something about it now 
What am I currently driving?
We have two cars, a 7th gen Civic Exi that we have kept for 15 years and a cuore that has been with us for 7 years (its a 2002). Both cars were bought used and have been reliable purchases. The civic has done 222k while the cuore is around 201k. Getting offers of 10+ lacs for civic and 5.30 lacs for cuore.
Daily utility for both cars is around 30 kms more or less. Weekends are mostly spent at home. Although I do try and do minimum 3 tours in a year to northern areas with family and friends. Oil changes and preventive maintenance is mostly done on time... cars stay road worthy year round.
Looking for Gen1 pajero because they are cheap, spacious, comfortable, easy to maintain (or so I have heard), rough and tough and have survived the test of times. Ok that is not the real reason. The real reason is I am a bit hesitant as I have to replace one of the cars since there is only space for 2 in my house. And so I am thinking about replacing the cuore since it is driven less and so if I sell it for something over 5 lacs I have some money that I can put in and take my budget up to around 9 lacs. That should get me a good gen 1 no?
On the other hand if I sell my civic for something over 10 and then I'll have around 14 which should be good for a 2nd gen pajero. I don't mind buying a manual second gen with a 2.8 4m40 or smaller 4D56 turbo although I really want is something that has a 6G72 3.0 L V6.
I have looked at pajeros that have toyota engines...5vzfe for some reason is a favorite...others include 3S, 2L and even saw one with a 1kzTe....but I don't know if that is something I should go for. Intention is to sell what I buy in a year and half and climb up the generation ladder...