North Waziristan is emerging from an episode of terrorism that lasted for decades. Critically examining the dynamics of borderlands, this paper explicates the intersection of informal cross-border trade with the local economy and livelihoods. These socio-economic patterns created by ungoverned geographies, and porous uncontrolled borders foster a dependence on the informal economy, which is largely responsible for financing and perpetuating the instability. The paper signposts that effective border management and ongoing security reconstruction have contributed to rejuvenating the local economy and providing the necessary impetus for post-conflict economic development, keeping widespread unrest and militancy on hold.