JHUDDO, Pakistan: On any given morning in this flood-ravaged town in southern Sindh, Shamim Akhtar’s team of three men fans out on motorbikes, collecting scrap metal and plastic from doorsteps. 

In return, they hand over household essentials: pots, mugs, jugs — items many families need but can no longer afford.

It’s a barter economy, resurrected not by nostalgia but by necessity.

Once a farmer scraping by on unstable harvests, Akhtar, now 48, has become a self-made entrepreneur, running what she calls a modern twist on a traditional system. The shift has brought her stability and income — nearly Rs50,000 ($175) in monthly profit — in a region where formal employment is rare and inflation relentless.

“What we do [in this business] is that we take scrap from people’s houses and in return give them new things,” Akhtar told Arab News.

“In old times, our mothers used to give some junk or grain from home and take edible items or some vegetables … We now have revived the same system that we give house utensils [in exchange for their scrap].”

RETHINKING LIVELIHOODS AFTER FLOODS

The transformation began in the aftermath of Pakistan’s devastating 2022 floods, which killed over 1,700 people and displaced millions. In Jhuddo, where vast stretches of farmland were inundated, Akhtar lost her crops and her confidence in agriculture.

“All our crops would get destroyed whenever the flood would hit us,” she said. “In the initial days of flooding, the NGOs or government would help us but later we used to face very tough financial conditions.”

Farming, once her only means of survival, was no longer viable. So she pivoted, choosing to barter in utensils, essential items that every household needs. With capital provided by Germany’s Malteser International relief agency, she set up shop with wholesale goods from Hyderabad, sold scrap to local junkyards, and launched a low-cost business model tailored to village economics.

“We don’t have a cost-intensive system of giving expensive stuff to the villagers which they can’t even afford,” Akhtar explained. “We are doing this trade at the village level and are giving stuff that the villagers can afford.”

The NGO-backed program, a €600,000, 36-month initiative implemented by the Sindh Rural Support Organization (SRSO), has helped more than 150 women launch nano-enterprises in climate-affected areas of Mirpurkhas district.

“Earlier, the people here mostly used to do farming and rear livestock, but now they have diversified [their sources of income] to business,” said Komal Jameel, a livelihood officer at SRSO.

“She [Akhtar] keeps giving us her data entry through digitalization on a daily basis. She tells our team how much loss and earnings she is making out of her business. This scrap exchange is a very good business.”

WOMEN LEAD NEW ECONOMIC MODELS

Across the region, other women are following suit. In Niaz Kapri village, 48-year-old Hameeda Tariq began a similar scrap-for-goods exchange after floods wiped out her family’s farmland and livestock. 

Working with her husband, who sources utensils from nearby cities, she now earns around Rs40,000 ($140) a month.

“Before starting this business, we used to work in the fields and domesticate livestock,” said Tariq, a mother of three. “What brought us here is the recurring incidents of flooding in our village that would damage our crops and kill our animals.”

In neighboring villages, women are testing other models: a cosmetics stall in Roshanabad, a spice business in Khuda Bux II, a beauty parlor and tuck shop in Mir Allah Bachayo union council. All operate on small grants and are tracked digitally via mobile apps provided by SRSO.

“So far we have given grants to 320 individuals for starting nano businesses, of which 50 percent are females,” said SRSO district project officer Maqsood Alam. 

“We are strengthening local stakeholders and communities so that they could head toward sustainable livelihood and we could protect them in terms of climate change.”

The return to barter, often dismissed as outdated, is gaining currency in places where cash flow is erratic, formal banking is inaccessible, and climate volatility threatens conventional trade.

“This is a miracle in the history of Jhuddo that a female shopkeeper is sitting there and five females are jointly running this business,” Alam said.

For Akhtar, the impact is not just economic, but personal.

“This [business] has had a huge impact on my family,” she said. “Now we are earning a very good income from this, Mashallah, and we are getting a lot of support because of this.”