Leading Issues in the Economy of Pakistan: Agenda for Reforms Floor on Net Tax Revenues of FBR: A comparison is made below of the quarter revenue performance criteria with the actual revenues in the corresponding quarters of 2021­22. The setting of the targets is defective, with a big decline in the growth rate in the third quarter. With the present numbers in the performance criteria, there may be some difficulty in meeting the criteria in the second quarter of 2022-23. Ceiling on Power Sector Payment Arrears: The arrears of Rs 536 billion are all to be cleared in the first quarter of 2022-23. This is well-nigh impossible. It is surprising that the government accepted this target. Overall, the position with regard to meeting the performance criteria is given above in the Table 5.4. The three First Floor on Net International Reserves Second Ceiling on the General Government Primary Budget Deficit performance criteria which will be very difficult to meet are as follows: Third Ceiling on Power Sector Payment Arrears Therefore, the future of the IMF program over the next three reviews is uncertain. There will be pressure for mini-budgets or other emergency actions to meet all the criteria unless there is willingness to give waivers by the IMF through the Executive Board. 5.4 Fulfilling the External Financing Requirements This is a very important part of the IMF report. It indicates what the total external financing requirements are in 2022-23 and how these will be met, as shown in Table 5.5. They include potential rollovers and new inflows. The gross external financing requirements consist of the current account deficit, amortization of external debt and repayment of IMF loan. The year, 2021-22, witnessed a big shortfall in external financing, aggravated by the absence of a functional IMF program for many months. The financing requirement was $34.3 billion, augmented substantially by the large current account deficit of$17.4 billion. The total external financing which became available was$26.9 billion, implying a big shortfall$7.4 billion, which was reflected fully in the fall in foreign exchange reserves. The estimated external financing requirement in 2022-23 is$30.8 billion, with a smaller current account deficit of$9.3 billion and amortization of external debt of$21.5 billion. The expected inflow of financing is$37.2 billion, including$3.8 billion from the IMF. Consequently, a build-up of reserves of$6.4 billion is being projected. 72