Economic Agency and Urban Transformation: Afghan Refugees in Peshawar (1980–2010)

Abstract

This research paper examines the economic impact of Afghan refugees in Peshawar between 1980 and 2010. Contrary to narratives that frame refugees solely as a burden, I show that their prolonged presence was a dynamic force, fundamentally altering the city's economic and urban contours. The arrival of over half a million registered refugees, alongside subsequent waves, spurred significant urbanization by introducing new, often informal, economic processes. Afghan entrepreneurs established diverse small and medium enterprises, while the ready availability of low-wage labor fueled growth in sectors like construction and real estate. Furthermore, cross-border trade, despite its illicit elements, revitalized commerce in hubs such as Karkhana Bazaar. This study concludes that the refugee population acted as vital agents of economic transformation, creating a complex socio-economic hybridity that cemented Peshawar's status as a regional economic metropolis, despite the pressures exerted on existing social services and infrastructure.