KARACHI, May 13: Standard and Poor’s (S&P) Ratings Services stated on Monday that Pakistan’s parliamentary election results had set the stage for longer-term stability of ‘B-’ sovereign credit rating on the country.

A statement released by the international rating agency from Singapore, said that the partial results from the elections held on May 11 indicated a strong lead for the Pakistan Muslim League-Nawaz (PML-N). The rating agency acknowledged: “The elections were the first in the country’s history in which an elected government handed power to another elected government”.

Standard & Poor’s credit analyst Agost Benard said in his report that it was a key achievement for Pakistan’s maturing democracy, in the face of general economic malaise, widespread and incessant sectarian and political violence, large-scale domestic insurgencies, and ongoing tension with neighbouring India.

S&P recalled that in a commentary titled “Successful elections are crucial as Pakistan’s balance of payments pressures mounts,” published April 4, 2013, the rating agency had outlined its views that timely, successful, and credible elections were essential for Pakistan to deliver a government with a reasonable chance of tackling the country’s economic imbalances, including a looming balance of payments crisis.

“Preliminary election results indicate such an outcome,” analyst Benard said in his report on Monday. He stated that the elections took place on schedule, without major shortcomings that would result in a disputed outcome, and with a large voter turnout despite intimidation and bombings on election day by extremist elements.

The 60pc voter turnout, compared with 44pc in the 2008 elections, ensures greater legitimacy for the new government, S&P opined. Moreover, the results suggested that PML-N was likely to have a lead that would enable it to form a coalition without the support of major political rivals or the minor parties.

“We believe the election outcome puts the incoming government in good stead to sew up an IMF deal soon,” Benard said. This is needed to stabilise external finances and to provide the policy framework for necessary fiscal and energy sector reforms.

“If successful, the efforts will underpin the continued stability of the sovereign ratings at the current ‘B-’ level”, analyst Benard affirmed.

Regarding Standard & Poor’s Ratings Services, the paper mentioned that it was part of McGraw Hill Financial, the world’s leading provider of independent credit risk research and benchmarks.

It publishes more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities. S&P has 1,400 credit analysts in 23 countries and more than 150 years’ experience of assessing credit risk.