Moody's Investors Service ("Moody's") on Friday announced that it has now completed the periodic review of Pakistan.

The credit profile of Pakistan (issuer rating B3) reflects the country's "baa2" economic strength, which is underpinned by the robust long-term GDP growth potential and large scale of the economy, which is balanced against low per capita incomes and global competitiveness, said the credit rating agency.

Moody’s in its review said that Pakistan’s "b2" institutions and governance strength that balances still weak executive institutions and fiscal policy credibility and effectiveness against a lengthening track record of effective checks and balances and judicial independence, as well as increasing monetary and macroprudential policy effectiveness.

The report further said that the government's "ca" fiscal strength driven by its high government debt burden and narrow revenue base which hinders debt affordability and reduces fiscal flexibility given ongoing infrastructure and social spending needs.

Moody’s added that the "b" susceptibility to event risk driven by external vulnerability, as foreign-exchange reserve adequacy, though improving, remains low.

Moody’s said that this periodic review is unrelated to the requirement to specify calendar dates on which EU and certain other sovereign and sub-sovereign rating actions may take place.