"People may wonder why we, the opposition, are choosing to form a coalition government with the ruling party. We aim to foster a culture of stability and collaborative governance," Togmid Dorjkhand, Chairman of the Hun Party, said in a statement, reports Xinhua news agency.

"However, we will engage in debates at the parliament level. At the government level, the Hun Party accepts the proposal to form a coalition government, emphasising the need to move beyond partisan bickering and advance the country's major projects."

The MPP secured a narrow margin of victory in the parliamentary elections held on June 28, winning 68 of the 126 seats up for grabs, while the Democratic Party (DP) obtained 42 seats. The Hun Party secured eight seats, with the Civil Will-Green Party and the National Coalition each securing four seats.

The ruling party has proposed the formation of a coalition government with the main opposition: the Democratic Party and the Hun Party.

On Sunday, the DP announced that it had accepted the ruling party's proposal to form a coalition government.

In May 2023, the Asian country's parliament, also known as the State Great Khural, passed amendments increasing the number of legislators from 76 to 126.

The elections were conducted under a mixed electoral system, with 78 legislators elected through majority representation and 48 through proportional representation.

The Asian country's parliament operates under a unicameral system with a four-year term.