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Saad Eddine Othmani, leader of the Justice and Development Party (PJD), has pledged to deal with his country's high unemployment. (Rafael Marchante/Reuters)

Morocco's Interior Ministry says an Islamist party has won the most seats in parliamentary elections and is set to lead the next government.

On Sunday, the ministry said the Justice and Development Party (PJD) has taken 107 seats in the 395-seat legislature following the nationwide vote two days earlier.

The PJD is the latest Islamist party to win an election brought about by the Arab Spring. The right-of-center Istiqlal, a potential ally for the PJD, placed second with 60 seats.

Morocco has been swept by pro-democracy protests decrying lack of freedoms and widespread corruption. King Mohammed VI sought to defuse tensions by ordering a constitutional reform that gives parliament more power and moving up legislative elections by a year.

Under the new constitution, King Mohamed VI must now appoint the prime minister from the party which has the most seats, rather than annointing whomever he pleases.

The king still has the final say on issues of defence, security and religion.

Activists called the moves insincere and wanted the elections boycotted.