Karkhano (Pashto: کارخانو) is a market area located on the western side of Peshawar, Khyber Pakhtunkhwa, Pakistan, near the Khyber Tribal District, which in turn borders Afghanistan. The market was established in 1985 has more than 4,500 shops, owned by Pashtun traders. The name Kārkhānō means "industries" in Pashto language. On the right side of the markets are many industries which are actually located in the Hayatabad industrial estate. As the industries emerged in this area so did these markets. The people in Peshawar usually visit these markets because the prices of commodities in the shops are less than in other commercial parts of Peshawar. This market gets a huge amount of contraband from smugglers. The Market sells anything from electronics to clothing including clothes, cosmetics, toys, watches, cigars, video games, shoes, etc. The rising price of oil has seen a discount price of smuggled petrol in the market.
The Karkhano market is a place where many customers from Punjab used to visit and generate a large revenue for the traders but with the security situation as "not friendly", an enormous change has occurred in the number of customers visiting the area. The traders association has agreed to remove smuggled products from their stores but no action has been seen into the matter.