'On average, emerging govts will lose revenue worth 2.1 percentage points of GDP in 2020'KARACHI: Pakistan will face additional hurdles in increasing its tax revenue due to the coronavirus crisis, Moody’s Investors Service said in a report issued on Monday. According to Moody’s, on average, EM governments will lose revenue worth 2.1 percentage points of GDP in 2020, above the 1.0 pp loss in Advanced Economies (AEs). Sovereigns already struggling to increase their tax intake before the pandemic, like Pakistan, Tanzania, Ethiopia, Sri Lanka, and Bangladesh, will face additional hurdles. Almost all EMs will record budget deficits this year and face constraints in cutting spending amid the pandemic, amplifying the importance of revenue generation. However, only a few governments have successfully raised revenue much faster than GDP growth over the last 10 years.

Source: Pakistan Today October 12, 2020 14:48 UTC