They said the proposed tariff structure as a whole will badly affect the investment flow in the country.

Bangladesh Heritage Foundation and Bangladesh Institute of Law and International Affairs (Bilia) organised the roundtable on 'Bangladesh Budget 2007-08: Strategic Implication and Economic Development'.

"The proposed budget indicates that we are going to rely on an import-based economy," said economist Dr Atiur Rahman.

He further noted although the finance adviser vowed to reduce import dependency earlier, the proposed tariff structure does not reflect his pledge.

Wali-ur-Rahman, president of Bangladesh Heritage Foundation and director of Bilia, said the overall the budget is not balanced, although it is prepared with good intention.

"We understand 57 percent of the total expenditure will be for poverty eradication, but our calculations find only 9 percent of the allocated money will actually reach the target population," he said.

He said, "We believe it was a wrong decision to increase the price of diesel."

Annisul Huq, former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the cost of setting up of new factory will go up by 30 percent if the tariff proposals are implemented.

So, the budget is not good at all for the domestic industries, he added.

Abdul Matlub Ahmad, chairman of Nitol Group, suggested fixation of maximum retail prices of most essential commodities by the government so that prices cannot be manipulated.