KARACHI: The Pakistan International Airlines (PIA) Friday reported a net loss of Rs 11.58 billion for the first quarter (January-March) of calendar year 2017, representing a 90 percent increase as compared to last year’s losses of Rs 6.13 billion in the same period. The national airlines continued to suffer major financial losses in the current year where the main culprit remained huge general and administrative expenses, which accumulated to approximately Rs 2.67 billion for the three months ended March 31, 2017; compared to approximately Rs 2.65 billion for the three months ended March 31, 2016. There was no material change in the substance and composition of the expenses included in general and administrative expenses between the two periods. The payment of staff retirement benefits cost Rs 220.8 million to the national flag carrier during the first quarter of 2017 while it stood at Rs 200.3 million during the same period of 2016. PIA reported in a bourse filing that loss per share (basic and diluted) translated into Rs 2.19 in first quarter of fiscal year 18 (FY 18) as compared to Rs 1.15 in same period of fiscal year 17 (FY 17). Jet fuel accounted for Rs 8.23 billion of the total cost of services of the airlines, that stood at Rs 26.34 billion during July-September 2017, while the cost of service increased by 22 percent in first quarter of FY18 as compared to Rs 21.71 billion in first quarter of FY17.The fuel cost increased to around 53 percents against Rs 5.35 billion of fuel cost in corresponding period of previous fiscal year. In the period under review, the airlines also suffered a loss of Rs 105.28 million on the account of currency exchange against a profit of Rs 15.90 million in the corresponding period. PIA reported operating loss of Rs 7.81 billion, 185 percent higher than Rs 2.74 billion in the same period last year. The cost of finance (interest payment) increased to Rs 3.62 billion in first quarter of FY18 as compared to Rs 3.25 billion in the same period last year. Overall sales revenue fell 0.60 percent to Rs 24.71 billion during July-September 2017 when compared to sales revenue of Rs 24.86 billion in corresponding period of 2016. PIA remained on top of the list of Privatization Commission of Pakistan. The International Monetary Fund, leading creditor to the country, had also been urging the government to get it privatized sooner rather than later. The government, in December, converted the repealed PIA privatisation ordinance into a bill to keep the sell-off option of 26 percent shares to a strategic partner with under an ambitious privatisation plan. Published in Daily Times, October 14th 2017.