Post-conflict North Waziristan is experiencing a fundamental shift in the political and economic environment at a very fast pace. This paper examines the complex political economy of post-conflict North Waziristan to assess factors promoting sustainable peace in the region. It identifies the multi-pronged official strategy that is significantly contributing to the transformation of the political and economic environment in the post-conflict setting. These steps include inter alia effective border management to counter illicit trafficking and cross-border terrorism, security sector reforms, improving the mechanism of governance, and diversifying ‘formal’ economic opportunities. The analysis suggests that post-conflict North Waziristan exhibits considerable improvements towards establishing and promoting conditions that are pivotal for sustainable peace.