Import duty reductions in Pakistan could boost productivity for smaller firms.
The article looks at how certain policies affect the productivity of Pakistani firms. They found that when import duties on materials are higher, and foreign investment in certain services is lower, it leads to lower productivity for companies. Companies that can't get duty exemptions and smaller exporters benefit from lower input tariffs. Foreign investment in certain services helps firms that are not as productive. To improve productivity in Pakistan, it would be helpful to increase the exposure of certain sectors to global markets.