Kaghan valley starts from Balakot, which is famous for the Mausoleum of two Muslim warriors Syed Ahmed Shaheed Brelvi and Shah Ismail who laid their lives fighting against Sikhs in the 18th century. Balakot is situated at the foot of the mountains that goes thousands of feet above. The toy huts, which are amazingly perched on their slopes. On other side is the Kunhar River, which accompany you all along your journey. The river is muddy in the plains but as you go towards the mountains it becomes clearer. The road to Kaghan is frightening because on your left are the deep slopes to the river and on your right are the lofty mountains.
Balakot was the most affected area in the earthquake of 2005, in which the city was totally collapsed and the hotel / tourism industry was badly affected. The rehabilitation and reconstruction of the city is in process and a PTDC Motel is also being constructed.