KARACHI: The government on Wednesday raised Rs546 billion through the auction of long-term Pakistan Investment Bonds (PIBs) while the cut-off yields were slashed by up to 70 basis points.

The government remained within the auction target of Rs450bn, but it also borrowed Rs41.9bn on non-competitive bids and Rs54.4bn through short selling. In fact, the total amount raised by the government was Rs546.3bn.

In the treasury bill auction held on Jan 7, the cut-off yields were reduced by up to 34 basis points. The two auctions suggest the interest rate may be cut again at the next monetary policy committee meeting, scheduled for Jan 26 by at least 50bps.

Since inflation slowed in December 2025 compared with November, trade and industry groups began calling for a large rate cut of at least 300bps.

The highest amount of Rs126bn was raised for a 10-year period, and Rs125bn for a three-year tenor.

Published in Dawn, January 15th, 2026