Quoting the Centre for Policy Dialogue (CPD), a civil society think tank, Kibria said the government has curtailed Tk 4,000 crore from the announced Tk 20,300 crore annual development programme keeping the nation in the dark.

"This is a blatant cheating with the people," he said speaking at a meeting on the present situation of Bangladesh economy organised by Economic Reporters' Forum (ERF) at the National Press Club yesterday.

Kibria said deteriorating law and order, extortion and corruption are no doubt at the root of the country's current economic downtrend. At the same time decreasing public investment has caused the stagnancy.

"Businessmen are being abducted and killed everyday across the country. They are increasingly facing extortion," he said while talking about law and order.

The former finance minister was also critical of the government policy to receive loans from donors accepting harsh conditions. "This is very sad that our finance minister has to meet the donors in every three months and convince them."

About the condition set by the International Monetary Fund (IMF) to merge rural branches of the nationalised commercial banks he said the process would promote traditional moneylenders and destroy modern banking system.

Depicting a dismal economic scenario, Kibria said people's income did not increase but their cost of living shot up in recent times. "The price of almost every essential commodity, including rice and pulses, have gone up."

The government has failed to bring dynamism in the privatisation process, he said blaming 'conflicting attitude' of the privatisation commission and the ministries concerned, due to their motive for corruption.

The former finance minister said the country at present lacks an investment friendly environment, without which it is impossible to bring dynamism in the economy, acquire expected growth and reduce poverty.

According to him, infrastructure development in rural areas, creating adequate employment opportunities and bringing dynamism in the economic activities depend on public investment.

He said a huge amount of money is lying idle at different local and foreign banks. "This also hampers country's overall investment."

Kibria said the government has failed to keep inflation rate low, which led to soaring of the prices of essentials. At present the inflation rate is 6.5 percent.

He also blamed the government for its failure to take action programmes for preparing the country for post-MFA era.

Turning to the recent diesel and fertiliser crises he said the coming two weeks will be very crucial for the farmers. He asked the government to ensure adequate supply of diesel and fertiliser required during this season.

ERF President Monwar Hossain and General Secretary Nurul Hasan Khan were present at the meeting.