Client Name

A.P. Moller – Maersk

Faculty Advisor

Dr. Hilal Anwar Butt, Professor and Chairperson, Department of Finance

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

Our project aligns strongly with the Thought Leadership area of Investment Decision Making as it involved building a data-driven financial model to assess the long-term commercial viability of a proposed agri-export testing facility. By modeling various capital expenditure (CAPEX) scenarios: greenfield, brownfield with purchase, and brownfield with lease, we evaluated key financial indicators such as IRR, NPV, and payback periods to support strategic investment decisions. These projections were essential for Maersk to determine the feasibility of transitioning from an off-site testing pilot to a localized, DEFRA-compliant on-site lab in Pakistan.

Additionally, the model incorporated operational costs, growth assumptions, and market penetration rates, allowing for scenario testing and risk assessment. Our work enabled the client to evaluate trade-offs and make informed decisions based not just on logistics, but on long-term financial returns, regulatory alignment, and strategic value creation.

Aligned SDGs

GOAL 8: Decent Work and Economic Growth

Aligned SDGs Justification

Our project directly supports SDG 8: Decent Work and Economic Growth by proposing a system that improves Pakistan’s export competitiveness while creating inclusive economic opportunities. By reducing rejection rates of vegetable consignments through third-party testing, the project enables exporters and farmers particularly smallholders to access high-value markets like the UK with greater confidence and fewer financial risks. This not only enhances income security but also encourages formal training, traceability practices, and compliance with international standards.

The long-term goal of establishing a local ISO 17025-certified lab introduces new employment prospects in agri-testing, logistics, and digital supply chain management. It drives investment into infrastructure and compliance services that can strengthen Pakistan’s agricultural export sector overall. Through these combined effects, the project contributes to sustainable, export-led economic growth and better livelihoods across the value chain.

NDA

No

Abstract

This Experiential Learning Project (ELP), conducted in collaboration with Maersk Pakistan, aims to improve Pakistan’s export performance for four high-risk vegetables: okra, red chilli, green chilli, and bitter gourd by addressing frequent UK port rejections caused by regulatory non-compliance. The project focuses on designing a pre-export quality control model that meets DEFRA (UK Department for Environment, Food and Rural Affairs) standards, with testing conducted at third-party ISO 17025-certified labs in Rotterdam or Vietnam.

Key deliverables include:

(i) Detailed feasibility studies for each of the selected vegetables (okra, red chilli, green chilli, and bitter gourd)

(ii) A proposal formally drafted for DEFRA’s approval to initiate a pilot program

(iii) A financial model assessing the long-term viability of establishing an on-site accredited testing facility in Pakistan.

(iv) A final presentation summarizing the entire project.

Our research approach combined secondary data analysis, stakeholder interviews, and regulatory review to design a pilot model for third-party off-site testing in Rotterdam or Vietnam. The financial model explored multiple CAPEX scenarios (greenfield and brownfield), breakeven points, and scalability projections. The findings show that the off-site testing model is both feasible and impactful, significantly reducing export rejection rates and supporting long-term agri-trade growth. The project’s implications extend to food safety, supply chain compliance, and strategic investment in Pakistan’s agricultural export sector. Key contributors include Concave Agri (agri-tech and farmer digitization), Control Union (lab testing infrastructure), and the Ministry of Commerce, Pakistan. The resulting proposal is both commercially viable and strategically transformative, positioning Pakistan to build long-term agri-trade credibility with the UK and beyond.

Document Type

Restricted Access

Document Name for Citation

Enhancing Vegetable Exports from Pakistan to the UK

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