The IMF in its staff level report “First Post-Program Monitoring Discussions with Pakistan” has said that privatization and restructuring of key loss-making Public Sector Enterprises (PSEs) have been largely put on hold. Their losses now exceed PKR 1.2Tn (4% of GDP) which could eventually lead to a sizable demand for budgetary resources. The report further says that financial losses by PIA and PSM have continued to accrue, while the accumulation of new arrears of power Discos have reached PKR 514Bn (1.5% of GDP) by end-Dec.’17. The Fund urged the govt. to complete the unfinished agenda of restructuring and privatizing of loss-making PSEs.