KARACHI, Jan. 15 -- The government on Wednesday raised Rs546 billion through the sale of long-term Pakistan Investment Bonds (PIB) while sharply reducing cut-off yields by up to 70 basis points, pointing to expectations of lower interest rates ahead. Strong participation kept the borrowing within the Rs450bn auction target, although the government also secured additional sums through non-competitive bids and short selling.

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Data from the State Bank of Pakistan showed the government borrowed Rs41.9bn through non-competitive bids and another Rs54.4bn via short selling. This brought the total mobilisation to Rs546.3bn, reflecting robust appeti...