City (pop., 1998 est.: 988,055), capital of North-West Frontier province, Pakistan. It is located west of the Bara River near the Khyber Pass. Once the capital of the ancient Buddhist kingdom of Gandhara, it was a centre of the caravan trade with Afghanistan and Central Asia. It became the capital of the Indo-Scythian Kushn empire 1st century AD. It was captured by the Muslims in 988. By the 16th century Peshawar was ruled by the Afghans. It was under British control (1849-1947) and served as an important military base. The city is still militarily important; its ancient bazaar remains a meeting place for foreign merchants and traders