KATHMANDU, March 11 (Xinhua) -- A clear parliamentary majority for Nepal's Rastriya Swatantra Party (RSP) in the recent elections is expected to reduce near-term political uncertainty, enhance policy predictability and advance governance and economic reforms, Fitch Ratings said on Wednesday.
The RSP won 125 of 165 seats under the First-Past-the-Post (FPTP) electoral system. The party also secured nearly 48 percent of the votes under the proportional representation system, according to the Election Commission of Nepal. These results will give it nearly two-thirds seats of the 275-member House of Representatives, the lower house of parliament.
"The election result should lower the risk of prolonged coalition negotiations following last year's severe unrest, reduce the likelihood of frequent government changes seen in recent years, and potentially boost investor sentiment over time if signals point to tangible improvements in governance and economic reform delivery," the international rating agency said in a statement.
Fitch has been conducting Nepal's sovereign rating for the past two years.
"A single-party majority, subject to final certification by the Election Commission, should imply a short political transition and could improve Nepal's ability to sustain reform momentum and translate hydropower-led investment into broader-based growth," Fitch added.
Fitch noted that the new government's policy agenda would be key in determining the extent to which growth can be lifted from its current forecast of 4.5 percent for the fiscal year ending July 15, 2027. ■
