The Standard & Poor's has affirmed ratings on Pakistan at 'B-/B' with stable outlook. The rating agency said in a statement that the new government's reform efforts will lead to external funding support. It said Pakistan's weak institutional and governance effectiveness, significant security risks, high public and external debt, low per capita income, and weak fiscal profile remain rating constraints.

"We believe the new government's reform efforts will lead to external funding support and help contain external liquidity risks." The S&P said it was affirming its 'B-' long-term and 'B' short-term sovereign credit rating on Pakistan. The stable outlook on the rating balances the potential benefits of the government's reform efforts against vulnerabilities from fiscal, external, and security risks, the statement concluded.

Copyright Reuters, 2013