Three main sites in Pahalgam are : Chandanwari, Betaab Valley,so called because the Hindi film Betaab was shot there and Aru valley. You can only take local taxies- Sumo, Tavera or similar 7 seater car as taxis from Srinagar or Jammu are not allowed to take you sightseeing here. It will cost you about Rs 1500 as there is no bargaining.Personal vehicle from other state also not allowed to make Sight seen at betaab valley , Aru and Chandawanri Only Local vehicles and Army vehicle. Note that you are asked to pay an entry fee of Rs. 25 per head to enter Aru wildlife sanctuary, but there is no wild life there. You are just taken to a market place. Similarly an entry fee of Rs. 100 per head is charged to enter betaab valley, it is not worth it, you can see the valley while going to Chandanwari and judge for yourself. You get to play on snow in Chandanwari, special clothes or shoes are not needed but are available for rent. You are usually asked Rs.500 per head but you can bargain it down to Rs. 50.
Next thing to do in Pahalgam is Pony ride. Pony rides are available to a scenic meadow called Baisaran or 'Mini Switzerland' from city center and with full bargaining! At first you are asked to pay about Rs 1000 per person, but at last they will come with you at Rs 500 or even less.
White water rafting is must do thing in Pahalgam.
If you are travelling in the months of June and July, don't forget to carry your sunscreen lotions because if your skin is somewhat fair then you are prone to sun-burns.