We study the system of multi-body interacting bosons on a two dimensional optical lattice and analyze the formation of bound bosonic pairs in the context of the Bose-Hubbard model. Assuming a repulsive two-body interaction we obtain the signatures of pair formation in the regions between the Mott insulator lobes of the phase diagram for different choices of higher order local interactions. Considering the most general Bose-Hubbard model involving local multi-body interactions we investigate the ground state properties utilizing the cluster mean-field theory approach and further confirm the results by means of sophisticated infinite Projected Entangled Pair States calculations. By using various order parameters, we show that the choice of higher-order interaction can lead to pair superfluid phase in the system between two different Mott lobes. We also analyze the effect of temperature and density-dependent tunneling to establish the stability of the PSF phase.
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