The Dowqarun-Islam Qala border crossing is located about 10 km (6.2 mi) northwest of the town.

[2] The town plays an important role in the economy of Afghanistan because a substantial volume of national trade passes through it.

[9] Islam Qala became a border town during the Durrani Empire in the 19th century, after Afghanistan became a sovereign state.

On February 13, 2021, due to corruption and negligence,[11] large number of trucks were burnt by a fire incident at a parking area in Islam Qala.

Since then, it has been claimed that the corruption in the town has been eliminated and government revenue increased to over 8 billion afghanis in less than a year.