Pakistan's election could spell IMF Deal, says S&P

S&P says, elections were positive for the nation, would help the country's chances of getting international finances

The recent elections in Pakistan which saw a democratically elected government handed over power to another elected one for the first time in the country’s history could also help steady the nation’s finances and also help it get financial support from international agencies.

Standard & Poor's Ratings Services noted that the elections were a positive for the nation and would help the country’s chances of getting international funding.

"We believe the election outcome puts the incoming government in good stead to sew up an IMF(International Monetary Fund) deal soon," Standard & Poor's credit analyst Agost Benard  said in a press release.

"This is 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 neighboring India," Benard said.

The IMF deal is needed to stabilize external finances and to provide the policy framework for necessary fiscal and energy sector reforms, said the release. If successful, these efforts will underpin the continued stability of the sovereign ratings at the current 'B-' level.

The 60% voter turnout, compared with 44% in the 2008 elections, ensures greater legitimacy for the new government, said the report. It noted that the Pakistan Muslim League (Nawaz) will have enough of a lead to form a coalition without the support of its rivals or minor parties.