Portugal Colonial - Bangladesh PM-to-be Tarique Rahman and lawmakers sworn into parliament

Rahman is set to take over from an interim government that has steered the country of 170 million people for 18 months since the autocratic government of Sheikh Hasina was overthrown.

The lawmakers, who promised loyalty to Bangladesh, were sworn in by the Chief Election Commissioner AMM Nasir Uddin.

Bangladesh Nationalist Party (BNP) lawmakers are expected to formally elect Rahman as their leader, with President Mohammed Shahabuddin then to administer the oath of office to the prime minister and his ministers later on Tuesday afternoon.

Rahman, 60, chief of the BNP and scion of one of the country's most powerful political dynasties, won a landslide victory in the February 12 elections.

"This victory belongs to Bangladesh, belongs to democracy," he said in his victory speech on Saturday.

"This victory belongs to people who aspire to and have sacrificed for democracy."

But he has also warned of the challenges ahead, including tackling the economic woes of the world's second-largest garment exporter.

"We are about to begin our journey in a situation marked by a fragile economy left behind by the authoritarian regime, weakened constitutional and statutory institutions, and a deteriorating law and order situation", he added in his victory speech.

The new leader has pledged to restore stability and revive growth after months of turmoil that rattled investor confidence in the world's second largest garment exporter.

He has also called for all parties to "remain united" in a country polarised by years of bitter rivalry.

- 'Peaceful opposition' -

Rahman's win marks a remarkable turnaround for a man who only returned to Bangladesh in December after 17 years in exile in Britain, far from Dhaka's political storms.

The BNP coalition won 212 seats, compared with 77 for the Jamaat-e-Islami-led alliance.

Jamaat, which secured more than a quarter of seats in parliament -- a four-fold increase on its previous best -- have challenged results in 32 constituencies.

But Jamaat leader Shafiqur Rahman, 67, has also said the Islamist party would "serve as a vigilant, principled, and peaceful opposition".

Hasina's Awami League party was barred from taking part in the elections.

Hasina, 78, who was sentenced to death in absentia for crimes against humanity, issued a statement from hiding in India decrying an "illegal" election.

But India praised the BNP's "decisive win" -- a notable shift after deeply strained ties.

Only seven women were directly elected, although a further 50 seats reserved for women will be allocated to parties according to their share of the vote.

Four members of minority communities won seats, including two Hindus -- a population that makes up roughly seven percent in Muslim-majority Bangladesh.

Despite weeks of turbulence ahead of the polls, voting day passed without major unrest and the country has so far responded to the results with relative calm.

"If the BNP can do a good job with the economy, it will make everything else easier for the government," Crisis Group analyst Thomas Kean said.

"It will help to create a level of stability, to tackle the many other challenges beyond the economy."

G.Teles--PC